CITY OF DETROIT 2023
Individual
Income Tax Returns
FORMS AND INSTRUCTIONS
WWW.MIFASTFILE.ORG
E-ling your return is easy, fast, and secure!
Check the status of your return on-line at www.michigan.gov/citytax.
Please allow 14 days before checking the status of your e-led return.
Tax preparers who complete 11 or more Individual Income Tax returns
are required to e-le all eligible returns supported by their software.
Visit the City Tax Administration’s website at
www.michigan.gov/citytax or Treasury’s website at www.MIfastle.
org for a list of e-le resources, how to nd an e-le provider, and
more information on free e-le services.
FILING DUE DATE:
APRIL 15, 2024
W W W. M I C HI G A N .G OV/C I T Y TA X
This booklet is intended as a guide to help complete your return. It does not take the place of the law.
General Information for
2023 City of Detroit Income Tax Returns
Due Date. Your 2023 City of Detroit income tax return
is due April 15, 2024.
Choose e-file Instead of Paper Returns. Get Your
Refund Fast! E-filing eliminates many of the errors
that lengthen processing times. E-file returns are usually
processed within 14 days. Tax preparers who complete
11 or more individual income tax returns are required to
e-file all eligible returns. Visit www.MIfastfile.org for a
list of e-file resources, how to find an e-file provider, and
more information on free e-file services. When e-filing,
do not mail a paper copy of your return or supporting
schedules.
Self Service Options
Visit our secure website at www.michigan.gov/citytax to
check the status of your return. This service is available
24 hours a day, seven days a week.
IMPORTANT: To obtain information about your
account using the Internet you will need the following
information from your City return:
• Social Security Number (SSN) of the primary filer
(the filer listed first on the return).
• Adjusted gross income (AGI) or wages.
• Filing status (single, married filing jointly, married
filing separately).
• Form number of return filed (Form 5118, 5119, or
5120).
• Tax year of the return.
• City (Detroit).
Forms, instructions, and additional information is also
available by visiting www.michigan.gov/citytax.
Return Mailing Address. City of Detroit income tax
forms must be mailed to the address listed on each
particular tax form, if not choosing to e-file.
Taxpayer Assistance. Free voluntary preparation
assistance is available for certain taxpayers. Visit
www.michigan.gov/citytax for more information.
Estimated Payments
You must make estimated income tax payments if you
expect to owe more than $100 when you file your City
Income Tax Return.
File a City Estimated Individual Income Tax Voucher
(Form 5123) by April 15, 2024 and pay at least one-
fourth (¼) of the estimated tax. The remaining estimated
tax is due in three equal payments on June 17, 2024;
September 16, 2024 and January 15, 2025.
Visit www.michigan.gov/citytax to obtain
Form 5123
or to make electronic payments.
Do not use estimate
vouchers intended for another taxpayer. If you have made
estimated tax payments and do not owe more tax for the
year, you still must file a tax return.
Make your check payable to “State of Michigan-
Detroit”. Print the last four digits of your Social
Security number and “2024 City Estimate” on the front
of your check.
Mail your payment to:
Michigan Department of Treasury
P.O. Box 30738
Lansing, MI 48909
Failure to make payments or underpayment of
estimated payments. If you fail to make required
estimated payments, pay late, or underpay in any quarter,
Treasury may charge penalty and interest. The penalty for
failure to make estimated payments is 1% per month on
the unpaid balance, up to 25% of the total tax due. Interest
is one percent above the prime rate and is computed
monthly. The rate is adjusted on July 1 and January 1.
Penalty and Interest
If you pay late, you must add penalty and interest to
the amount due.
The interest rate is 1 percent above the adjusted prime
rate and is adjusted on January 1 and July 1 of each
year. Interest is charged from the original due date of
the return to the date the balance of the tax is paid.
The interest rate through June 30, 2024 is 9.30 percent
annually (.0002541) daily rate). For interest rates after
June 30, 2024 visit www.michigan.gov/citytax or call
517-636-5829.
The initial penalty is 1 percent of tax due. Penalty
increases by an additional 1 percent per month or fraction
thereof, to a maximum of 25 percent for failure to pay;
Any one of the following penalties may also apply to the
unpaid tax:
• 10 percent for negligence;
• 25 percent for intentional disregard of the law.
Contact Information
City Income Tax Administration Telephone Number
517- 636 -5829.
C u s t o m e r s e r v i c e r e p r e s e n t a t i v e s a r e a v a i l a b l e f r o m
8 a.m. to 4:00 p.m., Monday through Friday.
Assistance is available using TTY through the Michigan
Relay Service by calling 711.
Forms, instructions, and additional information is
available at www.michigan.gov/citytax.
Important Reminders
• Missing pages. Many City of Detroit income tax forms
and supporting schedules are multiple-page forms. All
pages must be completed and submitted for Treasury to
process the return.
• Using correct tax year forms. Appropriate tax year
forms must be filed (e.g., do not use a 2022 form to file
your 2023 return).
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• Missing, incomplete, or applied for Social Security
number. If you don’t have a Social Security number
(SSN) or an Individual Taxpayer Identification Number
(ITIN), apply for one through the IRS. Do not file your
City of Detroit income tax return until you have
received your SSN or ITIN.
Who Must File a Return
File a return if you owe tax, are due a refund, or your AGI
(Resident Return) or Wages (Part-Year or Nonresident
Return) exceeds your exemption allowance. City residents
should also file a City return if you file a federal return,
even if you do not owe City tax. This will eliminate
unnecessary correspondence from Treasury.
Important: If your AGI (Resident Return) or Wages
(Part-Year or Nonresident Return) are less than your
personal exemption allowance and City income tax was
withheld from your earnings, you must file a return to
claim a refund of the tax withheld.
Residency and Determining Which Form You
Must File
You only have one residency status, and that status
determines which form you will file.
If you lived inside the City of Detroit for all of 2023
(January through December), you are a resident of
Detroit. File a City of Detroit Resident Income Tax Return
(Form 5118).
If you lived outside the City of Detroit for all of 2023
(January through December), you are a nonresident of
Detroit. File a City of Detroit Nonresident Income Tax
Return (Form 5119) if you earned income in the City of
Detroit.
If you lived in the City of Detroit less than a full
year (anytime between January and December),
you are a part-year resident. File a City of Detroit
Part-Year Resident Income Tax Return (Form 5120).
Forms and instructions are available on the
Michigan Department of Treasury’s City Income Tax
Administration website at www.michigan.gov/citytax.
Married Persons — Joint or Separate
Individuals considered married for federal tax purposes
may file either a joint return or separate returns.
When a filer and spouse have a different residency status,
they should file married filing separately with each spouse
using the appropriate form.
When a filer had a different residency status than their
spouse during the tax year, they should file separate
returns with each spouse using the appropriate form.
Deceased Taxpayers
A personal representative for the estate of a taxpayer
who died in 2023 (or 2024 before filing a 2023 City
income tax return) must file if the taxpayer owes tax or
is due a refund. A full-year exemption is allowed for a
deceased taxpayer on the 2023 City Income Tax Return.
Use the decedent’s Social Security number and your
address. If the taxpayer died after December 31, 2022,
enter the date of death in the “Deceased Taxpayer” box in
the Certification section of the City Income Tax Return.
If filing as a personal representative or claimant and
you are claiming a refund for a single deceased taxpayer,
you must include a U.S. Form 1310 or Michigan Claim
for Refund Due a Deceased Taxpayer (MI-1310). Enter
the decedent’s name in the Filer’s Name lines and the
representative’s or claimant’s name, title, and address in
the Home Address line.
The surviving spouse is considered married for the year
in which the deceased spouse died and may file a joint
return for that year. Write your name and the decedent’s
name and both Social Security numbers on the return.
Write “DECD” after the decedent’s last name. You must
report the decedent’s income if the income is subject
to City of Detroit income tax. Sign the return. In the
deceased’s signature line, write “Filing as surviving
spouse.” If the taxpayer died after December 31, 2022,
enter the date of death in the “Deceased Taxpayer” box in
the Certification section of the City Income Tax Return.
If filing as a personal representative or claimant of a
deceased taxpayer(s) for a jointly filed return, you must
include a U.S. Form 1310 or Michigan Claim for a
Refund Due a Deceased Taxpayer (MI-1310). Enter the
names of the deceased persons in the Filer’s and Spouse’s
Name lines and the representative’s or claimant’s name,
title, and address in the Home Address line.
Estates and Trusts (Forms 5118 and 5120 only)
Estates and trusts with a Detroit taxable income who are
required to file a U.S. Income Tax Return for Estates
and Trusts, Form 1041, must file a 2023 City of Detroit
Income Tax – Estates and Trusts (Form 5462) available at
www.michigan.gov/citytax.
Extensions
To request more time to file your 2023 City income tax
return, complete a CITY Income Tax Return Application
for Extension of Time to File (Form 5209) by the original
due date (April 15, 2024 for the 2023 tax year) and submit
to the Michigan Department of Treasury. This extension,
if approved, will be granted for a period not to exceed
six months. A copy of the federal extension will not be
accepted in place of Form 5209.
Amended Returns
For amended returns, place an “X” in the box on the top
of page 1 and complete Part 6: AMENDED RETURN.
There is no specific form used to file an amended City
return. To amend your original return, select the form
type you originally filed for which you are amending.
Include any documents necessary to support the reason
for amending your return.
An amended City of Detroit income tax return is required
for any year that a determination is made by the Internal
Revenue Service that affects your City of Detroit tax
liability. This return is due within 90 days from the date
of the Internal Revenue Service’s final determination. If
you file an amended federal tax return that affects your
City of Detroit tax liability, you must file an amended city
income tax return.
An amended income tax return is also used to correct
errors on previous City of Detroit returns. The statute of
limitations to file an amended return is four years from
the due date of the return.
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Renaissance Zone (Forms 5118 and 5120 only)
Certain areas in the City of Detroit have been designated
Renaissance Zones by the State of Michigan. Certain
income of qualified residents and businesses in those areas
is not taxable. Contact the City of Detroit Renaissance
Zone Manager at 313-224-3560 to determine if you are in
a Renaissance Zone and qualify for this tax exemption.
Completing City Forms
Treasury captures the information from paper income
tax returns using an Intelligent Character Recognition
(ICR) process. If filing a paper return, avoid unnecessary
delays by following the guidelines below so your return is
processed quickly and accurately.
• Use black or blue ink. Do not use pencil, red ink, or
felt tip pens. Do not highlight information.
• Print using capital letters (UPPER CASE). Capital
letters are easier to recognize.
• Fill check boxes with an [X]. Do not use a check mark.
• Leave lines/boxes blank if they do not apply or if the
amount is zero unless otherwise directed.
• Do not write extra numbers, symbols, or notes on
the return, such as cents, dashes, decimal points,
commas, or dollar signs. Enclose any explanations on a
separate sheet of paper unless you are instructed to
write explanations on the return.
• Stay within the lines when entering information in
boxes.
• If a form has multiple pages, all pages must be filed.
• Report all amounts in whole dollars. Round down
amounts of 49 cents or less. Round up amounts of 50
cents or more. If cents are entered on the form, they
will be treated as whole dollar amounts.
Where to Mail Your Return
Mail refund or zero due returns to:
Michigan Department of Treasury
Lansing, MI 48956
If you owe tax, mail your return to:
Michigan Department of Treasury
Lansing, MI 48929
Make your check payable to “State of Michigan -
Detroit” and print the last four digits of your Social
Security Number and “2023 Detroit Income Tax” on
the front of your check. Do not staple your check to your
return.
A Note About Debts
By law, any money you owe to the City of Detroit for
income tax or a court-ordered garnishment must be
deducted from your refund before it is issued. Taxpayers
who are married filing jointly may receive a CITY
Non-Obligated Spouse (Form 5245) after the return is
filed. Completing and filing this form may limit the
portion of the refund that can be applied to a debt. If
Treasury applies all or part of your refund to any of these
debts, you will receive a letter of explanation.
Disclaimer
These instructions are interpretations of the Detroit
Income Tax Ordinance. The Detroit Income Tax
Ordinance will prevail in any disagreements
between the instructions and the Detroit Income Tax
Ordinance.
Line-by-Line Instructions for Form 5118,
2023 City of Detroit Resident Income Tax Return
Lines not listed are explained on the form.
If you are a resident of a city other than Detroit, do not
file this form. If you are a resident of Detroit and your
Adjusted Gross Income (AGI) is greater than your total
exemption allowance, you should file a City of Detroit
Resident Income Tax Return (Form 5118).
You are required to file a tax return and pay tax even if
your employer did not withhold Detroit income tax from
your paycheck. You are required to make estimated tax
payments if you work for an employer not withholding
Detroit tax from your wages.
Line 1: Only married filers may file joint returns. You
must complete the address section of the City of Detroit
return. If one or both of the taxpayers is deceased, write
“DECD” after the decedent’s last name.
Lines 2 and 3: Print your full Social Security number(s).
Line 5: Place an “X” in the box to identify your filing
status. An individual who is married for federal purposes
must either file a joint return with her/his spouse or file
using the status married filing separately. If your status
is married filing separately (box c), print your spouse’s
full name in the space provided and be sure to print his
or her full Social Security number on line 3. If you filed
your federal return as head of household or qualifying
surviving spouse, file your City return as single.
Line 6: Individuals who can be claimed as a dependent by
someone else cannot claim an exemption for themselves.
Place an “X” in the box if someone else can claim you as
a dependent. If taxable income is less than $600, no tax
is due and any tax withheld will be refunded. If income
is $600 or more, the tax shall be computed on the full
amount.
Line 8: Enter the number that applies to you and your
spouse only for lines 8a-8c. Enter the number that applies
to you, your spouse, and your dependents on lines 8d and
8e, as of December 31, 2023.
Line 8a: Enter “1” if you are single or married filing
separately; “2” if you are married filing jointly. Do
not claim an exemption on line 8a if you are a taxpayer
eligible to be claimed as a dependent by another taxpayer.
Line 8b: You qualify for this exemption if you are 65
years of age or older. This applies for you and/or your
spouse only.
Line 8c: You and/or your spouse qualify for this
exemption if you are deaf, blind, hemiplegic, paraplegic,
quadriplegic, or totally and permanently disabled.
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You may claim as many as apply to you and/or your
spouse.
• Deaf means the primary way you receive messages is
through a sense other than hearing (e.g., lip reading or
sign language).
• Blind means your better eye permanently has 20/200
vision or less with corrective lenses or your peripheral
field of vision is 20 degrees or less.
• Totally and permanently disabled means disabled as
defined under Social Security Guidelines 42 USC 416.
If you were age 66 by June 30, 2023, you may not
claim an exemption as totally and permanently
disabled.
PART 1: Income
The following income is subject to tax:
• Compensation.
• Net profits of an unincorporated business, profession,
enterprise, undertaking or other activity.
• Dividends, interest, capital gains less capital losses,
income from estates and trusts and net profits from
rental of real and tangible personal property.
The following income is not subject to tax:
• Gifts, inheritances and bequests.
• Pensions and annuities, including disability pensions.
(Pre-retirement distributions are taxable.)
• Proceeds from insurance (except payments from a
health and accident policy paid for by your employer
are taxable to the same extent as provided by the
Internal Revenue Code).
• Unemployment compensation, Welfare relief payments,
supplemental unemployment benefits (sub-pay).
• Worker’s compensation or similar payments for death,
injury or illness arising out of and in the course of an
employee’s job.
• Interest on obligations of the United States, the states
or subordinate units of government of the states.
• Military pay for members of the Armed Forces of the
United States and the National Guard.
• Social Security income or benefits.
Line 9: Enter your AGI from your federal
return. This is the amount from your
U.S. Form 1040, 1040NR or 1040SR. You must include
copies of federal schedules that apply to you.
Line 15: If you can be claimed as a dependent by another
taxpayer and this line is less than $600 enter $0 on Line 16.
PART 2: Credits and Payments
Line 17: Enter the amount of city income tax withheld
from a City of Detroit Withholding Tax Schedule
(Form 5121), line 5. W-2 forms are no longer accepted.
File Form 5121 and a City of Detroit Withholding Tax
Continuation Schedule (Form 5253), when applicable.
The credit for withholding may be denied if you do not
complete and include Form 5121.
Use Form 5253 when you have more than eight W-2s
to list on Form 5121. Carry the total from column E on
Form 5253 and add it to the total on line 5 on Form 5121.
Line 18: Enter total payments made on a 2023 City
Estimated Individual Income Tax Voucher (Form 5123).
Include the amount of your credit forward from the prior
year and payments made with extensions for 2023.
Line 19: Enter the amount of city income tax paid for you
by a partnership from Form 5121, line 6.
Use Form 5253 when you have more than three
partnerships to list on Form 5121. Carry the total from
column C on Form 5253 and add it to the total on line 6
on Form 5121.
Line 20: Enter tax paid to another City. This credit may
not exceed the tax a nonresident of Detroit would have
paid on the same income earned in the City of Detroit.
The credit only applies for the tax paid on income
received while a resident. Enter the name of the city to
which tax was paid.
PART 3: Refund or Tax Due
Line 22a: If line 16 is greater than line 21, subtract
line 21 from line 16. Enter the difference on line 22a.
Line 22b: You will owe interest for late payment of tax if
you pay after the due date. The interest rate is 1 percent
above the adjusted prime rate and is adjusted on January
1 and July 1 of each year. Interest is charged from the
original due date of the return to the date the balance of
the tax is paid. The interest rate through June 30, 2024 is
9.30 percent annually (0.0002541 daily rate). For interest
rates after June 30, 2024 visit www.michigan.gov/citytax
or call 517-636-5829. Calculate your interest, if applicable,
and enter on line 22b.
Line 22c: You will owe penalty for late payment of tax if
you pay after the due date. Penalty accrues monthly at one
percent of the tax due, and increases by an additional one
percent per month (a partial month is considered a full
month for the purposes of calculating penalty). Calculate
your penalty, if applicable, and enter on line 22c.
Line 22d: Typically, if you owe more than $100, you are
required to make estimated payments. You may owe
penalty and interest for underpayment, late payment, or
for failing to make estimated tax payments. Use the City
Underpayment of Estimated Income Tax (Form 5338) to
compute penalty and interest. If you do not file Form 5338,
Treasury will compute your penalty and interest and send
you a bill. Enter the penalty and interest due from Form
5338, line 28.
Line 22e: Add lines 22a through 22d and enter the total
on line 22e. This is the total balance due with your return.
If the balance due is less than $1, no payment is required,
but you must still file your return.
See “Pay” address on page 2 of Form 5118. Make checks
payable to “State of Michigan - Detroit.” or visit
www.michigan.gov/citytax to pay electronically
Line 25: Subtract line 24 from line 23. The Department
of Treasury does not refund amounts less than $1. Mail
your city income tax return to the “Refund or zero
returns” address on page 2 of Form 5118.
PART 4: Additions to Income
Line 26:
Enter the deduction taken for self-employment
tax on your federal return and for other taxes on or
measured by income, such as your share of City of Detroit
5
income tax paid by partnerships or S-Corporations, or
Miscellaneous business expenses such as professional
your share of the taxes paid by an estate or trust.
dues, supplies, education and others not covered in
Line 28: Enter other additions to income listed below:
the above list are not deductible for City of Detroit tax
• Enter losses from S-Corporations to the extent
included in AGI
• Enter the other adjustments below if subtracted to
reach federal AGI
○ Educator expenses
○ Health savings account deduction or Archer MSA
deduction
○ Penalty on early withdrawal of savings
○ Student loan interest deduction
○ Repayment of supplemental unemployment
benefits under the Trade Act of 1974
• Enter the portion of a loss which occurred prior to
July 1, 1962. Use one of the methods described below
for Line 36, applying the method to the loss included in
AGI, to determine the amount to report.
• Enter federal NOL subtracted in determining AGI.
PART 5: Subtractions from Income
Line 30: Enter pension, annuity and other retirement
benefits included in AGI. Do not deduct benefits
distributed early.
Line 31: Enter only the taxable portion of Social Security
benefits included on your U.S. Form 1040. Do not include
your total Social Security benefits.
Line 32: Enter interest on obligations of the United States
or subordinate units which were included in AGI.
Line 33: You may subtract state and local income tax
refunds and homestead property tax credit refunds that
were included in AGI.
Line 34: Enter unemployment benefits included in AGI.
Line 35: If applicable, enter Renaissance Zone deduction,
and include Renaissance Zone approval letter from the
City of Detroit.
Line 36: Enter any other subtractions from income listed
below.
• Ordinary, necessary, reasonable and unreimbursed
expenses paid or incurred by an individual in
connection with the performance by an individual of
services as an employee may be deducted from gross
income in determining income subject to the tax to the
extent the expenses are applicable to income taxable
under this ordinance. The expenses are limited to the
following:
○ Expenses of travel, meals and lodging while away
from home.
○ Expenses incurred as an outside salesman who
works away from their employer’s place of
business.
○ Expenses of transportation.
○ Expenses under a reimbursement or other expense
allowance arrangement with your employer, where
the reimbursement or allowance has been included
in total compensation reported.
Documentation that the activity was authorized by your
employer and verification of expenses may be required.
purposes.
• Compensation received for service in the armed forces
of the United States to the extent included in AGI.
• Income from recoveries related to federal itemized
deductions from prior tax years.
• Net profits received from a financial institution or an
insurance company should be included here.
• You may deduct the portion of gain which occurred
prior to July 1, 1962. To determine the amount
excluded, use one of the following methods:
1. The base may be the adjusted fair market value of
the property on July 1, 1962 (July 2nd closing
price for traded securities), or
2. Divide the number of months the property has been
held since June 30, 1962 by the total number of
months the property was held, and apply this
fraction to the total gain as reported on your federal
income tax return.
• The city net operating loss (NOL) carryover is limited
for NOLs created in 2018 and future years. Enter the full
amount of NOL carryovers from NOLs created before
2018 (Group 1). For NOLs created in 2018 and future
years (Group 2), enter the lesser of the Group 2 NOL
carryover or 80% of the income subject to tax after
deducting Group 1 NOLs. The calculation may be made
using a worksheet found on the City Income Tax website
at www.michigan.gov/citytax. Net operating losses may
only be carried forward.
• Enter income from an S-Corporation to the extent
included in AGI
AMENDED RETURN WORKSHEET
Line 1: Overpayment from
amended Form 5118, line 23. ........... $
Line 2: Refund from original
Form 5118, line 25............................ $
Line 3: Amount credited to
estimated tax from amended
Form 5118, line 24.
...........................
$
Line 4: Subtract lines 2 and 3 from
line 1. If greater than zero, enter
amount to be refunded here and on
amended Form 5118, line 25 ............ $
Line 5: Subtract lines 2 and 3 from
line 1. If less than zero, enter amount
as tax due here and on Form 5118,
line 22a ............................................... $
PART 6: Amended Return
IMPORTANT: If you are amending, you must place an
“X” on page 1 of your amended return.
Line 38: Enter the reason for amending your return.
Complete the AMENDED RETURN WORKSHEET. Do
not mail the amended return worksheet; retain for records.
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Include all payments made with the original City of Detroit If the tax preparer is someone other than the taxpayer,
Income Tax return on line 18. If line 23 computes to be he or she must enter the business name, address and
an overpayment, it should be adjusted to reflect original telephone number of the firm he or she represents and
refunds and credits on the AMENDED RETURN Preparer Tax Identification Number (PTIN), Federal
WOR KSH EET. Employer Identification Number (FEIN), or Social
PART 7: Certication
Security number. Check the box to indicate if Treasury
may discuss your return with your tax preparer.
Sign and date your tax return. If filing a joint return, both
the filer and spouse must sign the return.
Line-by-Line Instructions for Form 5119,
2023 City of Detroit Nonresident Income Tax Return
Lines not listed are explained on the form.
• Totally and permanently disabled means disabled as
If you do not have income subject to City income tax in
defined under Social Security Guidelines 42 USC 416.
excess of total exemption amount for the City of Detroit, do
If you were age 66 by June 30, 2023, you may not
not file a City of Detroit Nonresident Income Tax Return
claim an exemption as totally and permanently
(Form 5119) unless you are filing to claim a refund of
disabled.
withholding tax paid to the City of Detroit.
PART 1: Income
Line 1: Only married filers may file joint returns. You
The following income is subject to tax:
must complete the address section of the City of Detroit
• Compensation received as an employee for work done
return. If one or both of the taxpayers is deceased, write
or services performed in the City of Detroit.
“DECD” after the decedent’s last name.
• Net profits of an unincorporated business or profession
Lines 2 and 3: Print your full Social Security number(s).
based on business activity conducted in the City of
Line 5: Place an “X” in the box to identify your filing
Detroit, whether or not such business or profession is
status. An individual who is married for federal purposes
located in the City of Detroit.
must either file a joint return with her/his spouse or file
• Net profits from rental of real or tangible personal
using the status married filing separately. If your status is
property located in the City of Detroit or gains on a
married filing separately (box c), print your spouse’s full
sale or exchange of real or tangible personal property
name in the space provided and be sure to print his or her
located in the City of Detroit.
full Social Security number on line 3. If you filed your
The following income is not subject to tax:
federal return as head of household or qualifying surviving
• Gifts, inheritances and bequests.
spouse, file your City return as single.
• Pensions and annuities, including disability pensions.
Line 6: Individuals who can be claimed as a dependent by
(Pre-retirement distributions are taxable.)
someone else cannot claim an exemption for themselves.
• Proceeds from insurance (except that payments from a
Place an “X” in the box if someone else can claim you as
health and accident policy paid for by your employer
a dependent. If taxable income is less than $600, no tax
are taxable to the same extent as provided by the
is due and any tax withheld will be refunded. If income
Internal Revenue Code).
exceeds that amount, the tax shall be computed on the full
• Unemployment compensation, Welfare relief payments,
amount.
supplemental unemployment benefits (sub-pay).
Line 8: Enter the number that applies to you and your
• Worker’s compensation or similar payments for death,
spouse only for lines 8a-8c. Enter the number that applies
injury or illness arising out of and in the course of an
to you, your spouse, and your dependents on lines 8d and
employee’s job.
8e, as of December 31, 2023.
• Interest, dividends and other forms of intangible
Line 8a: Enter “1” if you are single or married filing
income (when the receipts in interest and/or other
separately; “2” if you are married filing jointly. Do not
intangible income is part of a business, it shall be
claim an exemption on line 8a if you are a taxpayer eligible
considered as business income taxable to nonresidents
to be claimed as a dependent by another taxpayer.
and reported in Part 5).
Line 8b:
You qualify for this exemption if you are 65 years
• Military pay for members of the Armed Forces of the
of age or older. This applies for you and/or your spouse only.
United States and the National Guard.
Line 8c: You and/or your spouse qualify for this exemption
• Social Security income or benefits.
if you are deaf, blind, hemiplegic, paraplegic, quadriplegic,
Line 9:
Enter wages, salaries, tips, and other
or totally and permanently disabled.
compensation earned in the City of Detroit. Do not include
You may claim as many as apply to you and/or your spouse.
compensation received for service in the armed forces of
• Deaf means the primary way you receive messages is
the United States. Follow instruction (a) if you performed
through a sense other than hearing (e.g., lip reading or
all of your services in the City of Detroit. Use instruction
(b) if you performed part of your services in the City of
sign language).
Detroit and part of your services outside the City of
• Blind means your better eye permanently has 20/200
Detroit.
vision or less with corrective lenses or your peripheral
field of vision is 20 degrees or less.
7
a) Nonresidents who worked 100 percent of the year in the
City of Detroit enter total wages, salaries, commission, etc.
All of your wages, including vacation pay, holiday pay,
bonuses and disability income (except that portion which
can be excluded under the Internal
Revenue Code) are
taxable. All wages are considered to be from the location
where the employee performed services.
b) Nonresidents who performed part of their services
in the City of Detroit are required to complete
Part 3 on the City of Detroit Withholding Tax Schedule
(Form 5121), page 2. Enter total wages earned in the City
of Detroit from the sum of Column H on Form 5121,
page 2. Form 5121 and the City of Detroit Withholding
Tax Continuation Schedule (Form 5253) are not required
to determine Detroit commissions. Those paid by
commission should enter actual commissions earned in
the City of Detroit on line 9.
Line 10: Enter net profit or loss from business (including
farm income) or profession. Include income reported on
Form 1099-MISC if the work occurred inside the City
of Detroit. Use Part 5 to apportion income to the City of
Detroit if business activity occurs both inside and outside
the City. Business income from activity that occurs in a
qualified renaissance zone should be excluded. You must
include a copy of U.S. Schedule C or Schedule F.
Line 11: Enter the gains and losses from the sale or
exchange of real or tangible personal property located in
the City of Detroit. Include schedules from your federal
income tax return to support line 11. Gains or losses on
sale of intangible assets (e.g., stocks, bonds) are neither
taxed nor deductible by nonresidents on the Detroit
return.
The portion of a gain that is due to ownership prior to
July 1, 1962, may be deducted from taxable income.
See the instructions for line 33. If the sale of property
acquired prior to July 1, 1962 results in a loss, exclude
from your loss the portion of the loss due to ownership
prior to July 1, 1962. Use one of the methods described
in the instructions for line 33 to determine the amount of
loss to exclude.
Line 12: Enter the net profit or loss from rentals of
real and tangible personal property located in the City
of Detroit. Include U.S. Schedule E from your federal
income tax return to support line 12. If rental income
is from property in an eligible renaissance zone the
net income may be excluded and the Renaissance
Zone approval letter from the City of Detroit should be
submitted.
Line 13: Report your share of the Detroit partnership
income (or loss) on line 13. If you are a shareholder in a
tax-option corporation that has elected to file under
Sub-Chapter S of the Internal Revenue Code, you are not
required to report a distribution, nor may you deduct your
share of any loss sustained by the corporation.
Line 13 should include other City of Detroit income
subject to tax that is not reported elsewhere on this return.
Add the amounts from City of Detroit Activities:
• Income or Loss from Partnerships and Income or Loss
from Estates and Trusts of the U.S. Schedule E.
Include copy of federal Schedule K-1 for your share
of partnership losses on City of Detroit activities and
U.S. Form 8582.
Line 18: If you can be claimed as a dependent by another
taxpayer and this line is less than $600 enter $0 on Line 19.
PART 2: Credits and Payments
Line 20: Enter the amount of city income tax withheld
from Form 5121, line 5. W-2 forms are no longer
accepted. File Form 5121 and Form 5253 when applicable.
The credit for withholding may be denied if you do not
complete and include Form 5121.
Use Form 5253 when you have more than eight W-2s to
list on Form 5121. Carry the total from column E on Form
5253 and add it to the total on line 5 on Form 5121.
Line 21: Enter total payments made on a 2023 City
Estimated Individual Income Tax Voucher (Form 5123).
Include the amount of your credit forward from the prior
year and payments made with extensions for 2023.
Line 22: Enter the amount of city income tax paid for you
by a partnership from Form 5121, line 6.
Use Form 5253 when you have more than three
partnerships to list on Form 5121. Carry the total from
column C on Form 5253 and add it to the total on line 6
on Form 5121.
PART 3: Refund or Tax Due
Line 24a: If line 19 is greater than line 23, subtract
line 23 from line 19. Enter the difference on line 24a.
Line 24b: You will owe interest for late payment of
tax if you pay after the due date. The interest rate is
1 percent above the adjusted prime rate and is
adjusted on January 1 and July 1 of each year.
Interest is charged from the original due date of
the return to the date the balance of the tax is
paid. The interest rate through June 30, 2024 is
9.30 percent annually (.0002541 daily rate). For interest
rates after June 30, 2024 visit www.michigan.gov/citytax
or call 517-636-5829. Calculate your interest, if applicable,
and enter on line 24b.
Line 24c: You will owe penalty for late payment of tax if
you pay after the due date. Penalty accrues monthly at one
percent of the tax due, and increases by an additional one
percent per month (a partial month is considered a full
month for the purposes of calculating penalty). Calculate
your penalty, if applicable, and enter on line 24c.
Line 24d: Typically, if you owe more than $100, you
are required to make estimated payments. You may owe
penalty and interest for underpayment, late payment, or
for failing to make estimated tax payments. Use the City
Underpayment of Estimated Income Tax (Form 5338)
to compute penalty and interest. If you do not file Form
5338, Treasury will compute your penalty and interest and
send you a bill. Enter the penalty and interest due from
Form 5338, line 28.
Line 24e: Add lines 24a through 24d and enter the total
on line 24e. This is the total balance due with your return.
If the balance due is less than $1, no payment is required,
but you must still file your return.
See “Pay” address on page 3 of Form 5119. Make checks
payable to “State of Michigan - Detroit” or visit
www.michigan.gov/citytax to pay electronically.
8
Line 27: Subtract line 26 from line 25. The Department
of Treasury does not refund amounts less than $1. Mail
your city income tax return to the “Refund or zero
returns” address on page 3 of Form 5119.
PART 4: Subtractions from Income
Subtractions are allowable to the extent the expenses are
applicable to income reported on this return.
Line 28: Ordinary, necessary, reasonable and
unreimbursed expenses paid or incurred by an individual
in connection with the performance by an individual
of services as an employee may be deducted from gross
income in determining income subject to the tax to the
extent the expenses are applicable to income taxable
under this ordinance. The expenses are limited to the
following:
• Expenses of travel, meals and lodging while away from
home.
• Expenses incurred as an outside salesman who works
away from their employer’s place of business.
• Expenses of transportation.
• Expenses under a reimbursement or other expense
allowance arrangement with your employer, where the
reimbursement or allowance has been included in total
compensation reported.
Documentation that the activity was authorized by your
employer and verification of expenses may be required.
Miscellaneous business expenses such as professional
dues, supplies, education and others not covered above
are not deductible for City of Detroit tax purposes. If the
employee expenses relate to a position where wages are
apportioned on Form 5121, Part 3, only report the Detroit
share of the expenses here.
Line 29: Contributions to an Individual Retirement
Account may be deducted. The IRA deduction is only
allowable for taxpayers with City of Detroit earned
income to the extent the income is subject to tax. IRA
deductions are limited to contributions eligible for
deduction on the federal income tax return.
Line 30: To compute the alimony deduction, divide line
14 by your federal AGI (before alimony deductions).
Multiply that amount by the amount of alimony paid. The
alimony deduction for payers only applies to those who
have a court order issued before January 1, 2019.
Line 31: Moving expenses incurred by members of
the Armed Forces on active duty pursuant to a military
order and incident to a permanent change of station that
qualify under the Internal Revenue Code as a deduction
on your federal return may be deducted on your City of
Detroit return. The City of Detroit deduction is limited to
moving expenses in connection with new employment in
the Detroit area. Multiply eligible expenses by the ratio
of Detroit taxable income after the move to total income
after the move. Include U.S. Form 3903 with your return.
Line 32: Enter only net profits included on line 14.
Line 33: Enter gain on property purchased prior to July 1,
1962 which must be determined by one of the following
methods:
1. The basis may be the adjusted fair market value of the
property on July 1, 1962 (July 2nd closing price for traded
securities), or
2. Divide the number of months the property has been
held since June 30, 1962 by the total number of months
the property was held, and apply this fraction to the total
gain as reported on your federal income tax return.
PART 5: Business Income Apportionment
Only complete this section if you had business income on
U.S Schedule C or E. Part 5 of Form 5119 is to apportion
income to the City of Detroit if business activity occurs
both inside and outside the city. Business income does not
include income from S-Corporations. If you have income
from more than one business to apportion, complete a
City of Detroit Business Income Apportionment Schedule
(Form 5327). You may complete as many continuation
schedules as needed. Do not file this form. Retain a copy
for your records.
NOTE: If you have a separate business name or Federal
Employer Identification Number (FEIN) for your
business, enter those in the space provided.
Line 35: Enter in Column A the average net book value
of ALL real and tangible personal property owned by the
business regardless of location. In Column B, enter the
average net book value of the real and tangible personal
property owned and located in the City of Detroit.
The average net book value of real and tangible personal
property may be determined by adding the net book
value at the beginning of the year and the net book value
at the end of the year and dividing the sum by two. If
this method will not properly reflect the average net
book value of tangible property owned during the year,
any other method that will accurately reflect it will be
permitted.
Line 36: Enter in Column A the gross annual rent
multiplied by eight for all rented real property regardless
of location. In Column B, enter the gross annual rent
multiplied by eight for rented real property located in the
City of Detroit. Gross annual rent should include money
and other considerations given for the use or possession of
real property rented or leased.
Line 38: Enter in Column A total compensation paid
to all employees during the year. In Column B, show
compensation paid to employees for work or services
performed within the City of Detroit.
Line 39: Enter in Column A the total gross revenue from
all sales or services rendered during the year. In Column
B,
show the amount of revenue derived from sales made or
services rendered in the City of Detroit. Rental income is
to be considered as derived from services rendered and is
to be included in gross receipts.
Line 41: If column A has an amount greater than zero on
each of lines 37, 38 and 39, divide line 40 by 3. If column
A is zero for any of lines 37, 38 or 39, then divide line 40
by the number of factors that include an amount greater
than zero in column A.
If the entire business operation is conducted inside the
City of Detroit, your percentage should be 100 percent.
In the case of a taxpayer authorized by the City of Detroit
Finance Director to use another apportionment formula,
retain a copy of the approval letter. Treasury may request
a copy of your approval letter.
Note: Do not complete this line if you did not complete
lines 35 through 39.
9
Line 42: Enter net profit (or loss) per U.S. Schedule C or
U.S. Schedule F.
Line 44: The city net operating loss (NOL) carryover is
limited for NOLs created in 2018 and future years. Enter
the full amount of NOL carryovers from NOLs created
before 2018 (Group 1). For NOLs created in 2018 and
future years (Group 2), enter the lesser of the Group 2
NOL carryover or 80% of the income subject to tax after
deducting Group 1 NOLs. The calculation may be made
using a worksheet found on the City Income Tax website
at www.michigan.gov/citytax. Net operating losses may
only be carried forward.
If less than 100 percent of business activity was
conducted in the City of Detroit in the year in which the
loss was sustained, the apportionment percentage in the
loss year must be applied.
Line 45: Enter the applicable part of self-employment
retirement deduction. Multiply deduction from
U.S. Form 1040, Schedule 1 by line 41.
PART 6: Amended Return
IMPORTANT: If you are amending, you must place an
“X” on page 1 of your amended return.
Line 48: Enter the reason for amending your return.
Complete the AMENDED RETURN WORKSHEET. Do
not mail the amended return worksheet; retain for records.
Include all payments made with the original City of
Detroit Income Tax return on line 21. If line 25 computes
to be an overpayment, it should be adjusted to reflect
original refunds and credits from the AMENDED
RETURN WORKSHEET.
AMENDED RETURN WORKSHEET
Line 1: Overpayment from
amended Form 5119, line 25
........... $
Line 2: Refund from original
Form 5119, line 27
........................... $
Line 3: Amount credited to
estimated tax from amended
Form 5119, line 26.
..........................
$
Line 4: Subtract lines 2 and 3 from
line 1. If greater than zero, enter
amount to be refunded here and on
amended Form 5119, line 27
........... $
Line 5: Subtract lines 2 and 3
from line 1. If less than zero, enter
amount as tax due here and on Form
5119, line 24a
..................................... $
PART 7: Certication
Sign and date your tax return. If filing a joint return, both
the filer and spouse must sign the return.
If the tax preparer is someone other than the taxpayer,
he or she must enter the business name, address and
telephone number of the firm he or she represents and
Preparer Tax Identification Number (PTIN), Federal
Employer Identification Number (FEIN), or Social
Security number. Check the box to indicate if Treasury
may discuss your return with your tax preparer.
Line-by-Line Instructions for Form 5120,
2023 City of Detroit Part-Year Resident Income Tax Return
Lines not listed are explained on the form.
If you do not meet the requirements for filing a return, but
Detroit tax was withheld or estimated tax paid, a return
must be filed to obtain a refund of tax withheld.
Line 1: Only married filers may file joint returns. You
must complete the address section of the City of Detroit
return. If one or both of the taxpayers is deceased, write
“DECD” after the decedent’s last name.
Lines 2 and 3: Print your full Social Security number(s).
Line 5: Place an “X” in the box to identify your filing
status. An individual who is married for federal purposes
must either file a joint return with her/his spouse or file
using the status married filing separately. If your status
is married filing separately (box c), print your spouse’s
full name in the space provided and be sure to print his
or her full Social Security number on line 3. If you filed
your federal return as head of household or qualifying
surviving spouse, file your city return as single.
Line 6: Enter your dates of residency in 2023. If you were
a resident in the City of Detroit January 1, 2023 through
December 31, 2023, file a City of Detroit Resident Income
Tax Return (Form 5118).
Line 8: Enter the number that applies to you and your
spouse only for lines 8a-8c. Enter the number that applies
to you, your spouse, and your dependents on lines 8d and
8e, as of December 31, 2023.
Line 8a: Enter “1” if you are single or married filing
separately; “2” if you are married filing jointly. Do
not claim an exemption on line 8a if you are a taxpayer
eligible to be claimed as a dependent by another taxpayer.
Line 8b: You qualify for this exemption if you are 65
years of age or older. This applies for you and/or your
spouse only.
Line 8c: You and/or your spouse qualify for this
exemption if you are deaf, blind, hemiplegic, paraplegic,
quadriplegic, or totally and permanently disabled.
You may claim as many as apply to you and/or your
spouse.
• Deaf means the primary way you receive messages is
through a sense other than hearing (e.g., lip reading or
sign language).
• Blind means your better eye permanently has 20/200
vision or less with corrective lenses or your peripheral
field of vision is 20 degrees or less.
• Totally and permanently disabled means disabled as
defined under Social Security Guidelines 42 USC 416.
If you were age 66 by June 30, 2023, you may not
claim an exemption as totally and permanently
disabled.
10
Line 9:
Individuals who can be claimed as a dependent by
someone else cannot claim an exemption for themselves.
Place an “X” in the box if someone else can claim you as a
dependent. If taxable income is less than $600, no tax is due
and the tax withheld will be refunded. If income exceeds
that amount, the tax shall be computed on the full amount.
PART 1: Income
See instructions for Forms 5118 and 5119 regarding
the differences between income subject to tax for
residents and nonresidents.
The following income is subject to tax:
• Compensation.
• Net profits of an unincorporated business, profession,
enterprise, undertaking or other activity.
• Dividends, interest, capital gains less capital losses,
income from estates and trusts and net profits from
rental of real and tangible personal property.
The following income is not subject to tax:
• Gifts, inheritances and bequests.
• Pensions and annuities, including disability pensions.
(Pre-retirement distributions are taxable.)
• Proceeds from insurance (except that payments from a
health and accident policy paid for by your employer
are taxable to the same extent as provided by the
Internal Revenue Code).
• Unemployment compensation, Welfare relief payments,
supplemental unemployment benefits (sub-pay).
• Worker’s compensation or similar payments for death,
injury or illness arising out of and in the course of an
employee’s job.
• Interest on obligations of the United States, the states
or subordinate units of government of the states.
• Military pay for members of the Armed Forces of the
United States and the National Guard.
• Social Security income or benefits.
Line 10: Enter wages, salaries, tips or other
compensation. All wage income is taxable while
a resident of the City of Detroit. Only wage
income earned inside the City of Detroit is taxable
while a nonresident. See instructions for the
City of Detroit Nonresident Income Tax Return
(Form 5119), to determine the amount of taxable wages.
Do not include compensation received for service in the
armed forces of the United States.
Line 11: Enter taxable interest reported on U.S. Form
1040 and received while a resident of the City of Detroit
in Column A. Interest on obligations of the United States
is exempt.
Line 12: Report taxable dividends received while a
resident of the City of Detroit in Column A.
Line 13: Report taxable alimony received while a resident
of the City of Detroit in Column A. Generally, the person
receiving alimony will not have taxable alimony if the
court order was issued after December 31, 2018.
Line 14: Enter all business income earned while a
resident in Column A. Enter business income amount
earned from business located in the City of Detroit while
a nonresident in Column B. Business income does not
include income from S-Corporations. If business activity
occurs both inside and outside the City of Detroit while a
nonresident, complete a City of Detroit Business Income
Apportionment Schedule (Form 5327). Add the total from
Form(s) 5327, line 19, and enter on line 14, Column B.
For additional instruction on completing Form 5327, refer
to instructions for Form 5119, “Part 5: Business Income
Apportionment.” You may complete as many schedules
as needed. Do not file this form. Retain a copy for your
records.
Line 15: Residents should generally report all gains
and losses in Column A. Nonresidents should report
the gains and losses from the sale or exchange of real or
tangible personal property located in the City of Detroit in
Column B. Include schedules from your federal income
tax return to support line 15. Gains or losses on sale of
intangible assets (i.e., stocks, bonds, etc.) are neither taxed
nor deductible by nonresidents on the City of Detroit return.
Gain or loss on property purchased prior to July 1, 1962
should be excluded. To determine the amount excluded,
use one of the following methods:
1. The base may be the adjusted fair market value of the
property on July 1, 1962, or
2. Divide the number of months the property has been
held since June 30, 1962 by the total number of months
the property was held and apply this fraction to the total
gain or loss as reported on your federal income tax return.
Line 16: Residents should report any early distribution
from an Individual Retirement Account (IRA) received
before age 59 1/2.
Line 17: Residents should report any early distribution
from a pension plan, annuity, or other retirement plan.
Line 18: Enter the net profit or loss from royalties and
rentals of real and tangible personal property from U.S.
Schedule E received while a resident of the City of Detroit
in Column A. Enter the net profit or loss from rental of
real and tangible property located in the City of Detroit
and received while a nonresident in Column B. Include
schedules from your federal income tax return to support
line 18.
Line 19: Enter all partnership and trust income
included on your U.S. Form 1040, U.S Schedule E
and received while a resident in Column A. For the
period you were a nonresident, report your share of the
City of Detroit partnership income (or loss) on line 19
Column B. If you are a shareholder in a tax-option
corporation that has elected to file under
Sub-Chapter S
of
the Internal Revenue Code, you are not required to report
a distribution, nor may you deduct your share of any loss
sustained by the corporation.
Include a copy of your federal Schedule K-1 for your
share of partnership losses on City of Detroit activities
and U.S. Form 8582.
Line 20: Enter income reported as “Other Income” on
U.S. Form 1040, Schedule 1 and received while a resident
in Column A, except for income from recoveries related
to federal itemized deductions from prior tax years.
Line 20 should include other City of Detroit income
subject to tax that is not reported elsewhere on this return.
11
PART 2: Subtractions from Income
NOTE: For the period a taxpayer was a resident, any
expense listed may be subtracted in full. For the period a
taxpayer was a nonresident, the subtraction is limited to
the share of total income earned in the City of Detroit.
Line 22: Enter the amount deducted on your federal
return for contributions to an Individual Retirement
Account (IRA) and/or a retirement account for the self
employed (i.e., Keogh/SEP). Contributions made while a
nonresident may be subtracted only to the extent income
was earned in the City of Detroit.
Line 23: Ordinary, necessary, reasonable and
unreimbursed expenses paid or incurred by an individual
in connection with the performance by an individual of
services as an employee may be deducted from gross
income in determining income subject to the tax to the
extent the expenses are applicable to income taxable under
this ordinance. The expenses are limited to the following:
• Expenses of travel, meals and lodging while away from
home.
• Expenses incurred as an outside salesman who works
away from their employer’s place of business.
• Expenses of transportation.
• Expenses under a reimbursement or other expense
allowance arrangement with your employer, where the
reimbursement or allowance has been included in total
compensation reported.
Documentation that the activity was authorized by your
employer and verification of expenses may be required.
Miscellaneous business expenses such as professional
dues, supplies, education and others not covered above
are not deductible for City of Detroit tax purposes. Report
eligible expenses incurred while a resident in Column A
and those incurred while a nonresident in Column B.
Line 24:
Moving expenses incurred by members of the
Armed Forces on active duty pursuant to a military order
and incident to a permanent change of station that qualify
under the Internal Revenue Code as a deduction on your
federal return may be deducted on your City of Detroit
return. The City of Detroit deduction is limited to moving
expenses in connection with new employment in the Detroit
area. Multiply eligible expenses by the ratio of Detroit
taxable income after the move to total income after the
move. Taxpayers may not subtract moving expenses for
moves outside the City of Detroit. Include U.S. Form 3903
with your return.
Line 25: For nonresidents, compute the alimony
deduction by dividing your City of Detroit income
received while a nonresident by your federal Adjusted
Gross Income (before alimony deductions). Multiply that
amount by the amount of alimony paid. The alimony
deduction for payers only applies to those who have a
court order issued before January 1, 2019.
Line 26: If applicable, residents should enter Renaissance
Zone deduction in Column A, and include Renaissance
Zone approval letter.
Line 27: Net profits received from a financial institution
or an insurance company should be included here.
Enter net operating loss carryover. The city net operating
loss (NOL) carryover is limited for NOLs created in
2018 and future years. Enter the full amount of NOL
carryovers from NOLs created before 2018 (Group 1). For
NOLs created in 2018 and future years (Group 2), enter
the lesser of the Group 2 NOL carryover or 80% of the
income subject to tax after deducting Group 1 NOLs. The
calculation may be made using a worksheet found on the
City Income Tax website at www.michigan.gov/citytax.
Net operating losses may only be carried forward.
PART 3: Income Tax Calculation
Line 30: Exemptions on line 8f are multiplied by $600.
The amount allowed for exemptions is prorated based on
the number of months subject to each tax rate.
Line 32: When a loss exists on line 31 (if line 31 is
negative) in either Column A or B and there is income in
the other column, line 32 must be used to subtract the loss
from the income column to arrive at taxable income (or
loss) on line 33.
Example: A taxpayer reports $12,000 on line 29, column
A, and -$1,000 on line 29, column B. The taxpayer has
3 exemptions and was a Detroit resident for six months.
The taxpayer would report $900 in each column of
line 30. Line 31 would have $11,100 in column A and
-$1,900 in column B. Since column B has a loss, that
loss is transferred to column A on line 32. The taxpayer
would enter $1,900 in column A (the loss is entered as
a positive number). For line 33, column A is $9,200,
$11,100 - $1,900. The taxpayer would report $0 in Column B.
Line 33: If you can be claimed as a dependent by another
taxpayer and the sum of columns A and B for line 33 is
less than $600, enter $0 on Line 34.
Line 34: Multiply line 33, Column A by 2.4 percent
(0.024) and line 33, Column B by 1.2 percent (0.012).
PART 4: Credits and Payments
Line 36: Enter the amount of city income tax withheld
from a City of Detroit Withholding Tax Schedule
(Form 5121), line 5. W-2 forms are no longer accepted.
The credit for withholding may be denied if you do not
complete and include Form 5121.
Use the City of Detroit Withholding Tax Continuation Schedule
(Form 5253) in addition to Form 5121 if you have more
than eight W-2s to list. Carry the total from column E on
Form 5253 and add it to the total on line 5 on Form 5121.
Line 37: Enter total payments made on a 2023 City
Estimated Individual Income Tax Voucher (Form 5123).
Include the amount of your credit forward from the prior
year and payments made with extensions for 2023.
Line 38: Enter the amount of city income tax paid for you
by a partnership from Form 5121, line 6.
Use Form 5253 when you have more than three
partnerships to list on Form 5121. Carry the total from
column C on Form 5253 and add it to the total on line 6
on Form 5121.
Line 39: Enter tax paid to another City. The credit only
applies for tax paid on income received while a resident.
12
IMPORTANT: Enter the name of the city to which the
tax was paid. The credit may not exceed 1.2 percent of the
income earned in the other city.
PART 5: Refund or Tax Due
Line 41a: If line 35 is greater than line 40, subtract line
40 from line 35. Enter the difference on line 41a.
Line 41b: You will owe interest for late payment of tax if
you pay after the due date. The interest rate is 1 percent
above the adjusted prime rate and is adjusted on January
1 and July 1 of each year. Interest is charged from the
original due date of the return to the date the balance of
the tax is paid. The interest rate through June 30, 2024 is
9.30 percent annually (.0002541 daily rate). For interest
rates after June 30, 2024 visit www.michigan.gov/citytax
or call 517-636-5829. Calculate your interest, if applicable,
and enter on line 41b.
Line 41c: You will owe penalty for late payment of tax
if you pay after the due date. Penalty accrues monthly at
one percent of the tax due, and increases by an additional
one percent per month, or fraction thereof (e.g., penalty
on a $500 tax due will be $30 if the tax is unpaid for six
months). Calculate your penalty, if applicable, and enter
on line 41c.
Line 41d: Enter the penalty and interest due from Form
5338, line 28. Typically, if you owe more than $100, you
are required to make estimated payments. You may owe
penalty and interest for underpayment, late payment, or
for failing to make estimated tax payments. Use the City
Underpayment of Estimated Income Tax (Form 5338)
to compute penalty and interest. If you do not file Form
5338, Treasury will compute your penalty and interest and
send you a bill.
Line 41e: Add lines 41a through 41d and enter the total on
line 41e. This is the total balance due with your return.
If the balance due is less than $1, no payment is required,
but you must still file your return.
See “Pay” address on page 3 of Form 5120. Make
checks payable to “State of Michigan - Detroit” or visit
www.michigan.gov/citytax to pay electronically.
Line 44: Subtract line 43 from line 42. The City of
Detroit does not refund amounts less than $1. Mail your
City of Detroit return to the “Refund or zero returns”
address on page 3 of Form 5120.
AMENDED RETURN WORKSHEET
Line 1: Overpayment from
amended Form 5120, line 42
............
$
Line 2: Refund from original
Form 5120, line 44 ...........................
$
Line 3: Amount credited to
estimated tax from amended
Form 5120, line 43.
...........................
$
Line 4: Subtract lines 2 and 3 from
line 1. If greater than zero, enter
amount to be refunded here and on
amended Form 5120, line 44............
$
Line 5: Subtract lines 2 and 3 from
line 1. If less than zero, enter amount
as tax due here and on Form 5120,
line 41a................................................
$
PART 6: Amended Return
IMPORTANT: If you are amending, you must place an
“X” on page 1 of your amended return.
Line 45: Enter the reason for amending your return.
Complete the AMENDED RETURN WORKSHEET. Do
not mail the amended return worksheet; retain for records.
Include all payments made with the original City of
Detroit Income Tax return on line 21. If line 25 computes
to be an overpayment, it should be adjusted to reflect
original refunds and credits from the AMENDED
RETURN WORKSHEET.
PART 7: Certication
Sign and date your tax return. If filing a joint return, both
the filer and spouse must sign the return.
If the tax preparer is someone other than the taxpayer,
he or she must enter the business name, address and
telephone number of the firm he or she represents and
Preparer Tax Identification Number (PTIN), Federal
Employer Identification Number (FEIN), or Social
Security number. Check the box to indicate if Treasury
may discuss your return with your tax preparer.
13
Instructions for Form 5121,
City of Detroit Withholding Tax Schedule - 2023
The City of Detroit Withholding Tax Schedule
(Form 5121) is designed to report City of Detroit income
tax withholding and to apportion nonresident wages.
Use a City of Detroit Withholding Tax Continuation
Schedule (Form 5253) and include with return when
you have more than eight W-2s or more than three
partnerships to list on Form 5121. Carry the total from
column E on Form(s) 5253 and add it to the total on
line 5 on Form 5121. Carry the total from column C
on Form(s) 5253 and add it to the total on line 6 on
Form 5121.
Include a completed Form 5121 with your City of Detroit
income tax return.
If Form 5121 is not included when required, the
processing of your return will be delayed. Do not
submit W-2 or 1099 forms with your return. Keep
copies of your W-2 and 1099 forms with your tax
records for six years and have them available if
requested by the Department of Treasury.
Completing the Withholding Tables
Lines not listed are explained on the form.
Complete Form 5121 using information from your W-2,
1099 forms, and any other documents that report City
of Detroit income tax withheld. If you need additional
space, place an “X” in the box under line 6 and complete
Form 5253.
PART 1 Column D: Enter wages, tips, and other
compensation from which city income tax was withheld.
Also list any income reported on Form 1099 from which
city income tax was withheld.
PART 1 Column E: Enter income tax withheld on
compensation included in Column D. Also list any
withholding reported on Form 1099.
PA RT 2: Enter City of Detroit income tax withholding
paid on your behalf by a partnership. Include the
partnership’s name and federal identification number.
PART 3: Complete this section only if wages earned
while a nonresident or part-year resident were earned
from employment that was partly inside and partly
outside the City of Detroit. If married and filing a joint
return, wages from both spouses must be included on Part
3 if any of the wages from Part 1 of this form were earned
from employment inside the City of Detroit or if any City
of Detroit taxes were withheld. W2s, 1099 forms, or any
other documents reported on Part 1 that are not allocated
on Part 3 will be considered Detroit wages and taxed
accordingly.
Part-year residents should only complete this section if
they have wages earned while a nonresident that were
earned both inside and outside the City of Detroit. If
a part-year resident worked at the same job as both a
resident and as a nonresident, Column G will not be
the full amount reported in Box 1 of Form W-2. The
taxpayer should report the full amount of wages earned
as a resident on Form 5120, line 10, Column A. If the
taxpayer also has wages earned within Detroit as a
nonresident, the amount reported in Column G should
be the difference between the amount from Form W-2,
Box 1, and the amount reported on Form 5120, line 10,
Column A. For that job, the part-year resident taxpayer
would complete Columns B – F based on the time worked
as a nonresident only.
Example: A taxpayer worked at the same job for the entire
year. The main job location was inside Detroit, but the
taxpayer worked outside Detroit an average of one day per
week. On August 1st, the taxpayer moved into Detroit.
Box 1 of Form W-2 reports $42,000. The taxpayer would
report $17,500 on line 10, Column A, of Form 5120 based
on being a resident for 5 months. The taxpayer would
then report $42,000 - $17,500 = $24,500 in Column G,
Part 3 of the City Schedule W. Columns B through F
would be completed based on the taxpayer’s actual work
location while a nonresident.
Basic Guidelines for PART 3:
If Part 3 is not completed, all wages are assumed to have
been earned 100% inside the City of Detroit.
Non-residents and Part-year residents MUST complete
Part 3 to allocate wages from Part 1 outside of the City of
Detroit.
• Days Worked: Actual number of days you were on the
job. It does not include holidays, sick days, vacation
days or other days not worked.
• Hours must be converted to days.
• N o t e : D r i v e r s are considered working in the City of
Detroit while driving within city limits.
• If less than 100 percent of your wages are attributable
to work inside the City of Detroit, please obtain a letter
from your employer to verify Columns B through E of
Form 5121 and retain your work log for your records.
Treasury may request a copy of your work log and
employer letter.
• Do not round percentages. Report percentages to the
second decimal place.
14
Index
City Individual Income Tax Page
Additions to income (Form 5118) .................................. 6
Amending ...................................................... 3, 7, 10, 13
Blind exemption.................................................... 5, 7, 11
Business income apportionment............................... 9, 11
Deaf exemption..................................................... 5, 7, 11
Deceased ........................................................................ 3
Disabled exemption............................................... 5, 7, 11
Due date ......................................................................... 2
Electronic filing ....................................................1, 2, 32
Estates ............................................................................ 3
Estimated payments....................................................... 2
Extensions...................................................................... 3
Filing requirements........................................................ 3
Income subject to tax ........................................... 5, 7, 11
Income not subject to tax .....................................5, 8, 11
Interest ........................................................................... 2
Line-by-line instructions ............................................... 4
Military pay ..........................................................5, 8, 11
Net operating losses............................................6, 10, 12
Penalty............................................................................ 2
Pensions and annuities ..........................................5, 8, 11
Renaissance zone ........................................................... 4
Residency ....................................................................... 3
Rounding numbers......................................................... 4
Social Security income .........................................5, 8, 11
Subtractions from income.....................................6, 9, 12
Trusts ............................................................................. 3
Forms and Worksheets
Page
Forms
5118, City of Detroit Resident Income Tax Return ... 15-16
5119, City of Detroit Nonresident Income
Tax Return ..................................................................17-19
5120, City of Detroit Part-Year Resident Income
Tax Return ................................................................. 21-23
5121, City of Detroit Withholding Tax Schedule....... 25-26
5253, City of Detroit Withholding Tax
Continuation Schedule.............................................. 27-28
5327, City of Detroit Business Income
Apportionment Schedule................................................ 29
Worksheets
Amended Return Worksheet for Form 5118 .................... 7
Amended Return Worksheet for Form 5119 .................. 10
Amended Return Worksheet for Form 5120................. 13
Miscellaneous
Page
Self Service Options ........................................................ 2
Contact Information......................................................... 2
Where to Get Forms............................................... 2, 3, 32
31
CITY OF DETROIT FILING INFORMATION
In an eort to provide improved taxpayer service and eciency, the Michigan Department of
Treasury began processing the City of Detroit Individual Income Tax returns beginning with
the 2015 tax year.
The transion is part of Detroit’s post-bankruptcy management plan and aects any taxpayer
subject to Detroit City income tax.
City taxpayers are able to e-le their Detroit return with or without their State of Michigan
Individual Income Tax return. In addion, taxpayers now have access to Treasury’s online
services to check the status of their return.
Important Informaon
Filing due date for the 2023 Tax Year: April 15, 2024
If you owe tax, mail your return to:
Michigan Department of Treasury
Lansing, MI 48929
Mail refund or zero-due returns to:
Michigan Department of Treasury
Lansing, MI 48956
Visit www.michigan.gov/citytax for addional informaon.
To speak directly to a Customer Service Representave call 517-636-5829.
Tax Forms
All 2023 City of Detroit Tax Forms can be found at www.michigan.gov/citytax
Forms with instrucons are also available at Detroit City Hall.
5313 (06-23)
