INSTRUCTIONS: MICHIGAN ANNUAL RETURN FOR SALES, USE AND WITHHOLDING TAXES (Form 165)

All Michigan retail businesses and must file a tax return documenting their sales, use and withholding taxes. This article discusses form 165, which is filed on an annual basis if your company has a total tax liability of less than $750 for the calendar year.This form can be found on the website of the Michigan government.

Michigan Annual Return For Sales, Use And Withholding Taxes 165 Step 1: At the top of the page, enter the name of the taxpayer, the business account number, the year covered by the return, and the due date. If filing an amended return, check the box and enter the date of the amendment.

Michigan Annual Return For Sales, Use And Withholding Taxes 165 Step 2: Column A on page one is for the computation of use tax on items or services used in the state on which no sales tax was paid. Column B is for the computation of state tax. Lines 1 through 4 concern sales, rentals and other revenue. Lines 5a through 5j concern various allowable deductions. Total these on line 5k. Subtract line 5k from line 4 to determine your taxable balance. Enter this on line 6.

Michigan Annual Return For Sales, Use And Withholding Taxes 165 Step 3: The tax rate is provided on line 7. Multiply the balance due on line 6 by this rate and enter the gross tax due on line 8.

Michigan Annual Return For Sales, Use And Withholding Taxes 165 Step 4: Line 9 concerns tax collected in excess of that due. Add lines 8 and 9 and enter the sum in line 10. Consult the instructions to determine your total discount allowed and enter this in line 11. Subtract line 11 from line 10 to determine the total tax due on line 12. Enter payments made for the current year on line 13.

Michigan Annual Return For Sales, Use And Withholding Taxes 165 Step 5: Lines 14 and 15 concern use tax on items purchased for business or personal use. Lines 16 through 19 concern withholding taxes. Perform calculations as instructed on lines 20 through 27 to determine the total payment due.

Michigan Annual Return For Sales, Use And Withholding Taxes 165 Step 6: Provide all information requested about your business on the second page. Sign and date the form.