If you’ve paid more in withholding than you owe in taxes for the year, the IRS sends you a refund of the difference. If you didn’t have enough money withheld from your check, you owe the IRS.

How much of your tax withheld do you get back?

Before you’ve even begun to pay your income taxes, 7.65% of your income has been withheld. Your refund is determined by comparing your total income tax to the amount that was withheld for federal income tax.

Why is my Michigan State tax refund being withheld?

The Michigan Department of Treasury withholds income tax refunds or credits for payment of certain debts, such as delinquent taxes, state agency debts, garnishments, probate or child support orders, overpayment of unemployment benefits and IRS levies on individual income tax refunds.

Do you pay taxes on income earned outside of Michigan?

If you are a Michigan resident, all of your income is subject to Michigan tax, no matter where it is earned, except income reported on federal schedule C, C-EZ, E or F earned from out-of-state business activity. A Michigan resident may qualify for a non-refundable tax credit for tax paid to another government unit outside of Michigan, including:

Do you have to withhold pension payments in Michigan?

Michigan law requires the administrators of pension and retirement benefits (includes most payments that are reported on a 1099-R for federal tax purposes, such as: defined benefit pensions, IRA distributions, and most payments from defined contribution plans) to withhold income tax on payments that will be subject to tax.

How do I file my tax return in Michigan?

E-file your return through an approved online software company. Mail form 5122, City Income Tax E-file Payment Voucher (CITY-V) with your payment after you e-file your City of Detroit Income Tax Return. Do not use this voucher to make any other payments to the Michigan Department of Treasury.