2020 Schedule NR, Page 2
Instructions for Schedule NR, Nonresident and Part-Year Resident Schedule
Nonresidents and part-year residents must pay income tax to
Michigan on all income earned in Michigan or attributable to
Michigan. The following denitions may help determine what
income is attributable to Michigan (1) Allocate: To assign
or distribute to one state. (2) Apportion: To divide or share
between two or more states. (3) Attribute: To assign income by
use of allocation and/or apportionment.
Business Income (Loss)
For Michigan’s denition of business income and how
to determine business income attributable to Michigan,
see “Business Income (Loss)” section in the instructions.
Income Allocation
Each line in column A should equal the amount reported on
your federal return to the extent included in AGI. Enter in
column B the amount of income attributable to Michigan from
column A. Column C is the remaining income not attributable
to Michigan.
Line-by-Line Instructions
Line 5: Enter all wages, salaries, tips, etc.
• Column B: Part-year residents enter all salaries and wages
received for the period you were a Michigan resident
plus any wages earned in Michigan while you were a
nonresident. Nonresidents enter salaries and wages earned
in Michigan. Non-qualied stock options earned in
Michigan are allocated to Michigan.
Example: You reported $50,000 in wages on your U.S. Form
1040. Of this, $30,000 is taxable to Michigan. Enter $50,000 in
column A, $30,000 in column B, and $20,000 in column C.
Residents of Reciprocal States: Enter wages earned in
Michigan while a resident of a reciprocal state in column C.
See “Reciprocal States” in the instructions.
Line 6: Enter interest and dividend income.
• Column B: Enter the total nonbusiness interest and
dividend income you received while a Michigan resident.
Enter business interest and dividend income attributable to
Michigan.
Line 7: Enter income from U.S. Schedules C and F.
• Column B: Enter income attributable to Michigan.
Line 8: If all the income is solely allocated to Michigan, enter
in column 8A and 8B the gains/losses from the U.S. Schedule D
or U.S. Form 4797.
If you are allocating gains/losses to Michigan and another
state, complete Adjustments of Capital Gains and Losses (Form
MI-1040D) and/or Adjustments of Gains and Losses From
Sales of Business Property (Form MI-4797). Enter in column
B the amount allocated to Michigan from MI-1040D, column
G, line 12 (gains), or line 13 (losses). MI-4797 lers, include
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.
Line 10: Enter pensions, annuities, IRA distributions, taxable
Social Security benets, and income reported on Form 1099-R.
• Column B: Enter the income received while a Michigan
resident and see Form 4884 and instructions regarding
pensions, annuities, and IRA distributions.
Line 11: Enter other income subject to federal income tax, such
as alimony, prizes, unemployment, state and local tax refunds,
gambling winnings, or jury duty fees and identify the source.
Except as noted below, this income is allocated to the state
where you lived when you received it.
• Column B: Enter “other income” received while a
Michigan resident. Nonresidents must include Michigan
lottery winnings won after December 31, 1996, and
winnings from casinos or licensed horse tracks located
in Michigan.
• Column C: Allocate a federal net operating loss (NOL)
deduction entirely to column C. Claim the available
Michigan NOL deduction as a subtraction on the Michigan
Schedule 1, line 28.
Line 13: Enter your total adjustments to income from
U.S. Form 1040, Schedule 1. Also include charitable
contributions deducted in determining AGI.
• Column B: Enter the adjustments attributable to Michigan.
Describe these adjustments on the line given or include a
detailed schedule. Allocate or apportion the items listed below
in the following ways:
• Contributions to IRAs, SEP, SIMPLE, and qualied
plans are apportioned by the ratio of Michigan wages or
self-employment income to total wages or self-
employment income.
• The deduction for self-employment tax is apportioned by
the ratio of self-employment income earned in Michigan to
total self-employment income.
• The deduction for self-employed health insurance and
penalty for early withdrawal are allocated to the state
where you lived when it was paid.
Line 14: Subtract line 13 from line 12 and enter totals
in each column. The amount in column A should equal
MI-1040, line 10. If column C is greater than zero, enter it on
Schedule 1, line 13. If column C is less than zero, enter it as
a positive number on Schedule 1, line 4. Out-of-state losses
cannot reduce Michigan taxable income.
Exemption Allowance
Use lines 15 through 19 to gure your prorated exemption
allowance. NOTE: If one spouse was a full-year Michigan
resident and the other a part-year or nonresident, and you are
ling a joint return, complete Worksheet 6. Do not complete
lines 15 through 18.
NOTE: Part-year residents of a renaissance zone must use
Schedule NR to determine their subtraction. Enter total
income in column A, income received as a nonresident of the
zone in column B, and income received as a resident of the
zone in column C. Enter the total from line 14, column C on
Schedule 1, line 15. Full-year Michigan residents should not
prorate their exemption allowance.
