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2022 Schedule NR, Page 2
Instructions for Schedule NR, Nonresident and Part-Year Resident Schedule
Nonresidents and part-year residents must pay income tax to Line 10: Enter pensions, annuities, IRA distributions, taxable
Michigan on all income earned in Michigan or attributable to Social Security benefits, and income reported on Form 1099-R.
Michigan. The following definitions may help determine what • Column B: Enter the income received while a Michigan
income is attributable to Michigan (1) Allocate: To assign resident and see Form 4884 and instructions regarding
or distribute to one state. (2) Apportion: To divide or share pensions, annuities, and IRA distributions.
between two or more states. (3) Attribute: To assign income by Line 11: Enter other income subject to federal income tax, such
use of allocation and/or apportionment. as alimony, prizes, unemployment, state and local tax refunds,
Business Income (Loss) gambling winnings, or jury duty fees and identify the source.
For Michigan’s definition of business income and how Except as noted below, this income is allocated to the state
to determine business income attributable to Michigan, where you lived when you received it.
see “Business Income (Loss)” section in the instructions. • Column B: Enter “other income” received while a
Michigan resident. Nonresidents must include Michigan
Excess Business Loss Limitation lottery winnings won after December 31, 1996, and
If you filed a U.S. Form 461 Limitation on Business Losses, winnings from casinos or licensed horse tracks located
complete a Michigan Excess Business Loss MI-461 before in Michigan.
completing this form. Income or loss reported on Form MI-461 • Column C: Allocate a federal net operating loss (NOL)
should only be entered on this form according to Form MI-461 deduction entirely to column C. Claim the available
instructions. Do not report the same income or loss more than Michigan NOL deduction as a subtraction on the Michigan
once on the Schedule NR. Schedule 1, line 29.
Line 13: Enter your total adjustments to income from
Income Allocation U.S. Form1040,Schedule 1.
Each line in column A should equal the amount reported on • Column B: Enter the adjustments attributable to Michigan.
your federal return to the extent included in AGI. Enter in
column B the amount of income attributable to Michigan from Describe these adjustments on the line given or include a
column A. Column C is the remaining income not attributable detailed schedule. Allocate or apportion the items listed below
to Michigan. in the following ways:
• Contributions to IRAs, SEP, SIMPLE, and qualified
Line-by-Line Instructions plans are apportioned by the ratio of Michigan wages or
Line 5: Enter all wages, salaries, tips, etc. self-employment income to total wages or self-
employment income.
• Column B: Part-year residents enter all salaries and wages
received for the period you were a Michigan resident • The deduction for self-employment tax is apportioned by
plus any wages earned in Michigan while you were a the ratio of self-employment income earned in Michigan
nonresident. Nonresidents enter salaries and wages earned to total self-employment income. Enter the amount
in Michigan. Non-qualified stock options earned in of apportioned self-employment tax on the Michigan
Michigan are allocated to Michigan. Schedule 1, line 2.
Example: You reported $50,000 in wages on your U.S. Form • The deduction for self-employed health insurance and
1040. Of this, $30,000 is taxable to Michigan. Enter $50,000 in penalty for early withdrawal are allocated to the state
column A, $30,000 in column B, and $20,000 in column C. where you lived when it was paid.
Line 14: Subtract line 13 from line 12 and enter totals
Residents of Reciprocal States: Enter wages earned in
in each column. The amount in column A should equal
Michigan while a resident of a reciprocal state in column C.
MI-1040, line 10. If column C is greater than zero, enter it on
See “Reciprocal States” in the instructions.
Schedule 1, line 13. If column C is less than zero, enter it as
Line 6: Enter interest and dividend income. a positive number on Schedule 1, line 4. Out-of-state losses
• Column B: Enter the total nonbusiness interest and cannot reduce Michigan taxable income.
dividend income you received while a Michigan resident.
Enter business interest and dividend income attributable to Exemption Allowance
Michigan. Use lines 15 through 19 to figure your prorated exemption
Line 7: Enter income from U.S. Schedules C and .F allowance. NOTE: If one spouse was a full-year Michigan
• Column B: Enter income attributable to Michigan. resident and the other a part-year or nonresident, and you are
Line 8: If all the income is solely allocated to Michigan, enter filing a joint return, complete Worksheet 6. Do not complete
in column 8A and 8B the gains/losses from the U.S. Schedule D lines 15 through 18.
or U.S. Form 4797. NOTE: Part-year residents of a renaissance zone must use
If you are allocating gains/losses to Michigan and another Schedule NR to determine their subtraction. Enter total
state, complete Adjustments of Capital Gains and Losses (Form income in column A, income received as a nonresident of the
MI-1040D) and/or Adjustments of Gains and Losses From zone in column B, and income received as a resident of the
Sales of Business Property (Form MI-4797). Enter in column zone in column C. Enter the total from line 14, column C on
B the amount allocated to Michigan from MI-1040D, column Schedule 1, line 15. Full-year Michigan residents should not
G, line 12 (gains), or line 13 (losses). MI-4797 filers, include prorate their exemption allowance.
in column B the amount allocated to Michigan from column E,
line 18b.
Line 9: Enter income from the U.S. Schedule E.
• Column B: Enter income attributable to Michigan.
Nonbusiness rents and royalties from real and tangible
personal property located in Michigan are allocated to
Michigan.
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