Michigan Form 6072, Schedule FTE, is how you claim your share of the Flow-Through Entity tax credit on your Michigan income tax return. You attach it to your MI-1040 (or MI-1041 for a trust or estate) whenever a partnership, S corporation, or LLC you own an interest in has elected to pay Michigan’s FTE tax and allocated part of that payment to you.1Michigan Department of Treasury. Michigan Schedule FTE (Form 6072) Skip the schedule and the credit gets denied, even though the entity already paid the tax on your behalf.
The credit is refundable. That means it can drop your Michigan tax below zero and generate a refund, so it is worth filing a Michigan return to claim it even if you would otherwise owe no Michigan tax.2Michigan Department of Treasury. General Flow-Through Entity (FTE) Tax Credit
Who Files Schedule FTE
You file Form 6072 if you are a direct or indirect member of a flow-through entity that elected into Michigan’s FTE tax and you want to claim your allocated credit. Eligible electing entities are S corporations, partnerships, and LLCs that file federally as partnerships.3Michigan Department of Treasury. Flow-Through Entity Tax Frequently Asked Questions (FAQ) Sole proprietors, C corporations, single-member LLCs, and publicly traded partnerships cannot make the election, so their owners will not receive an FTE credit to report.
Direct owners complete Part 1. Owners who hold their interest through one or more intermediate pass-throughs complete Part 2 and add Form 6074 for each indirect credit.
What to Gather Before You Start
You need the FTE Tax Information Report from each electing entity you own. The entity is required to send this to you by the due date of its annual FTE return, and it can arrive in any format, including notes on your federal Schedule K-1.4Michigan Department of Treasury. Flow-Through Entity Tax The report tells you your allocated share of the FTE tax paid, any refunds the entity received, and how much of the FTE tax was deducted in computing your federal adjusted gross income.
You will also need:
- The legal name and FEIN of every electing entity you own directly or indirectly.
- Each entity’s tax year end in MM-YY format. A calendar-year entity’s 2025 tax year ends 12-25.
- A completed Form 6074, Michigan Schedule of Tiered Entities, for any interest you hold indirectly through another pass-through.5Michigan Department of Treasury. Michigan Schedule of Tiered Entities (Form 6074)
If the entity has not sent you its information report by the time your return is due, extending your Michigan filing to October 15 is usually safer than estimating the numbers.
Filling Out Part 1: Direct Ownership
Part 1 handles credits from entities you own directly. Give each credit-generating entity (CGE) its own row, and use a separate row for late-funded credits from a prior year even if they come from the same entity.1Michigan Department of Treasury. Michigan Schedule FTE (Form 6072)
Column C, Tax Year End. Enter the CGE’s tax year end in MM-YY format. Use the CGE tax year that ends with or within your own tax year. If the row is reporting a prior-year late-funded credit, use the CGE tax year the credit was generated in.
Column D, Late-Funded Credits. Your share of FTE tax the entity paid after its credit-funding deadline for a prior CGE tax year. Late-funded amounts go on their own row and never share a row with current-year credits.
Column E, Current-Year Credits. Your share of FTE tax for the CGE tax year shown in Column C, but only the portion the entity paid by its credit-funding deadline. Amounts the entity paid late don’t belong here; they will surface on a future return as a Column D entry.
Column F, SALT Addition. Your share of the CGE’s Michigan FTE tax for the same year, to the extent that tax reduced your federal AGI. This produces an addition on your Michigan return so you don’t get a Michigan benefit for a payment already deducted federally.
Column G, Refund Subtraction. Your share of any Michigan FTE tax refunded to the CGE during the CGE’s tax year that ends within yours, to the extent the refund was included in your federal AGI. This produces a subtraction so Michigan doesn’t tax you on a refund that only inflated your federal income.
Owners with more than one electing entity add a row per entity. The addition and subtraction columns are not optional. Leaving them blank when they should carry amounts makes your Michigan taxable income wrong and invites a Treasury notice.
Filling Out Part 2 and Form 6074: Indirect Ownership
Part 2 is for credits from entities you hold through one or more intermediate pass-throughs. Before you touch Part 2, complete a Form 6074 table for each indirect credit. If Form 6074 is not attached, the indirect credit gets denied outright.5Michigan Department of Treasury. Michigan Schedule of Tiered Entities (Form 6074)
Form 6074 traces the ownership chain. The top row of a table is the CGE that actually paid the FTE tax. Each row below is one link in the chain, ending with either you or the entity that passes the credit to you. For each level you enter the entity’s name, FEIN, tax year end, and the percentage of credit passed from the tier above. The table carries the credit, the SALT addition, and the refund subtraction down through every link.
You need a separate 6074 table for every distinct indirect credit. Two different CGEs reached through two different chains means two tables.
Back in Part 2 of Form 6072, each row corresponds to one 6074 table:1Michigan Department of Treasury. Michigan Schedule FTE (Form 6072)
- Column A: a unique number for the credit, starting at 1.
- Columns B, C, and D: the CGE’s name, FEIN, and tax year end, copied from the top of the matching 6074 table.
- Columns E and F: the name and FEIN of the entity one tier below the CGE, the first pass-through in the chain between you and the entity that paid the tax.
- Columns G, H, and I: the credit, SALT addition, and refund subtraction from the last row of the same 6074 table.
Filing Schedule FTE With Your Michigan Return
Attach the completed Form 6072, along with any Form 6074 tables and the FTE Tax Information Reports you received, to your MI-1040 or MI-1041. Michigan individual returns are due April 15.6Michigan Legislature. Taxpayer’s Guide Schedule FTE can be included in an e-filed return through supported tax software.
The totals on Form 6072’s summary lines flow to designated lines on your MI-1040: the credit reduces your Michigan tax (and can generate a refund), the addition increases your Michigan taxable income, and the subtraction decreases it.2Michigan Department of Treasury. General Flow-Through Entity (FTE) Tax Credit
Mistakes That Get FTE Credits Denied
A handful of errors show up over and over:
- Filing without the FTE Tax Information Reports from each directly owned electing entity. Treasury can deny the credit when the supporting information isn’t attached.4Michigan Department of Treasury. Flow-Through Entity Tax
- Claiming an indirect credit in Part 2 without a matching Form 6074 table. That credit is denied.5Michigan Department of Treasury. Michigan Schedule of Tiered Entities (Form 6074)
- Combining timely and late-funded credits on a single Part 1 row. Column D and Column E entries always need separate rows.
- Leaving Columns F and G blank when the entity’s report shows federal AGI effects. Skipping them leaves your Michigan taxable income wrong.
- Entering a full date where the form asks for MM-YY. Formatting mismatches cause processing delays.
The credit exists to pass the entity’s Michigan payment through to you, so treat the FTE Tax Information Report as the source of truth and copy from it carefully. If a number on the report looks off, resolve it with the entity before filing rather than adjusting on your own return.