How to Complete and File Michigan Form 6074: Schedule of Tiered Entities

Michigan Form 6074, the Schedule of Tiered Entities, is a supporting schedule you attach to your MI-1040 or MI-1041 when you claim an indirect credit for Michigan Flow-Through Entity (FTE) tax that was paid by an electing entity you own through one or more other flow-through entities. It applies to 2025 and later tax years and gives Treasury a structured way to trace the credit from the entity that paid the tax, up through every tier of ownership, to you.¹

When You Need to File Form 6074

You complete Form 6074 if you claim any indirect credit on Form 6072, Michigan Schedule FTE, Part 2. Three things have to be true:

You file a Michigan MI-1040 or MI-1041. The schedule is for individual and fiduciary filers.
You own an interest in a flow-through entity that elected into the Michigan FTE tax and actually paid tax. That entity is the credit-generating entity, or CGE.
Your ownership is indirect. You reach the CGE through at least one intermediate flow-through entity rather than owning it directly.¹

If you own the electing entity directly, your credit is a direct credit. It goes on Form 6072, Part 1, and Form 6074 is not required.

What to Gather Before You Start

Every flow-through entity in a tiered chain, whether it elected into the FTE tax itself or not, is required by Michigan law to pass FTE tax information through to its direct members. You may receive it as notes on your federal Schedule K-1, on a Michigan Flow-Through Entity Tax Information Report, or in another format the entity chooses. The documentation must name the CGE, include its FEIN, and state credits and adjustments separately by entity.²

Have the following in front of you:

The name and FEIN of each entity in the ownership chain, from the CGE at the bottom up to you.
Each entity’s tax year ending date.
Your allocated share of FTE tax paid by the CGE, split between current-year tax paid by the funding deadline and prior-year tax that was funded late.
Your allocated share of FTE tax that reduced your AGI (the addition amount) and any FTE tax refunds that increased your AGI (the subtraction amount).
K-1s from each flow-through entity, plus any Michigan FTE Tax Information Report or equivalent. Copies must be attached to your return.¹

If an entity in the chain has not sent you this reporting, your credit claim can be denied.²

How the Tables Are Organized

Form 6074 is built from numbered tables. Each table traces one indirect credit from a single CGE through the chain to you. If you have indirect credits from more than one CGE, use a separate table for each and number them sequentially in the field at the top. If a single credit needs more rows than one table holds, continue it on the next table using the same number.¹

Columns A Through C: The Ownership Chain

Column A lists the entities and people in the chain, working from the bottom up:

First row: the credit-generating entity.
Second row: the flow-through entity or fiduciary that directly owns the CGE.
Each subsequent row: the entity that directly owns the one listed above it.
Last row: you.

Column B is the FEIN or SSN for each row. Column C is the tax year ending date for each row in MM-YY format.¹

Column D: Percentage Shares

Column D is each entity’s or person’s percentage share of the CGE’s FTE tax. Leave it blank for the CGE row, because the CGE is the source of the credit rather than a recipient of it. For every other row, enter the percentage in XXX.XXXX format (76.5432 for a 76.5432 percent share). In many cases the figure matches the ownership percentage. When income or gain is specially allocated inside a partnership, derive the credit percentage from the ratio of the member’s allocated tax to the tax reported in the row immediately above.¹

Columns E and F: Credit Amounts by Timing

Column E is for prior-year late-funded credits. These are amounts of CGE FTE tax from a prior tax year that were paid after that year’s credit funding deadline and are now eligible to be claimed. Column F is your allocated share of FTE tax that the CGE paid by its credit funding deadline for the current tax year. Any tax the CGE paid after the deadline cannot be claimed this year and rolls forward.¹

Columns G and H: AGI Adjustments

Column G captures, for each entity in the chain, the share of FTE tax paid by the CGE to the extent it was deducted in arriving at that entity’s business income or your AGI. That amount gets added back to your Michigan AGI.¹

Column H works the other direction. If the CGE received a refund of Michigan FTE tax and that refund increased an entity’s business income or your AGI, report each entity’s share of the refund here. The amount becomes a subtraction from your Michigan AGI.¹

The Funding Deadline That Decides Which Year

Not every FTE tax payment produces an immediate credit. To qualify as a credit on your return for the same tax year, the CGE must pay its FTE tax by the fifteenth day of the third month after the end of its tax year, which is March 15 for calendar-year entities. Payments made after that date still generate credits, but you claim them on a later year’s return.³

That is why credit amounts are split across two columns. Column E picks up prior-year amounts that were funded late and are now claimable; Column F picks up current-year amounts funded on time. If the paperwork you received does not clearly separate the two, ask the entity to clarify before you file. Putting an amount in the wrong column will either overstate your credit this year or leave an eligible one unclaimed.

How to File It

Form 6074 is not filed on its own. Attach the completed schedule to your MI-1040 or MI-1041 along with Form 6072, Michigan Schedule FTE. The indirect credits on Form 6074 feed into Form 6072, Part 2, where the totals reduce your Michigan income tax liability.⁴ Include copies of each Schedule K-1, Michigan FTE Tax Information Report, or equivalent documentation from every entity in the chain.¹

Electronic filers transmit the schedule as part of the return package through Michigan Treasury Online or supported tax software. Paper filers include it in the MI-1040 or MI-1041 submission. Missing documentation, especially the K-1 notes or FTE tax information reports, is the most common reason a credit is denied, so confirm every entity in the chain is accounted for before you submit.⁴

Common Mistakes

Listing the chain in the wrong order. The CGE belongs in the first row and you belong in the last row. Each row in between must be the direct owner of the row above. Reversing the order breaks the percentage calculations in Column D.
Filling in Column D for the CGE row. The CGE has no share of its own tax; that row stays blank.
Using the ownership percentage when income is specially allocated. If a partnership allocates income disproportionately to ownership, the credit percentage must reflect the income allocation. Calculate it as your allocated tax divided by the total tax in the row above.
Mixing Columns E and F. Column E is for prior-year tax funded late; Column F is for current-year tax funded on time.
Skipping Columns G and H. The AGI adjustments are not optional when FTE tax affected your federal AGI, and leaving them off can trigger a mismatch when Treasury cross-references your return against the entity’s filing.

1
Michigan Department of Treasury. Michigan Form 6074 – Michigan Schedule of Tiered Entities
2
Michigan Department of Treasury. Flow-Through Entity Tax Frequently Asked Questions
3
Michigan Department of Treasury. Flow-Through Entity Annual Return (Form 5772) Instructions 2024
4
Michigan Department of Treasury. Flow-Through Entity Tax