For Tribal Members with active RTM status in 2024, you qualify for the Michigan income tax exemption benefit for qualifying income types and a Michigan sales tax credit for your 2024 Individual Michigan Tax Return. If you had 2024 RTM active status, a letter from the Pokagon Band Finance Department has been sent to the address on file at the end of January 2025.
The three forms listed below and included in the letter will need to be completed to receive this benefit. Please follow the below instructions to complete the forms as a tribal member with 2024 RTM status.
Michigan Tax Form Full Name                              Form Reference Name
2024 Michigan Individual Income Tax Return                              MI-1040
2024 Michigan Schedule 1 Additions and Subtractions                     Schedule 1
2024 Michigan Residential Tribal Member Annual Sales Tax Credit               4013
Michigan Income Tax Return Filing Instructions
- Qualified Income- The below webpage link identifies the income types that qualify for income tax exemption as an RTM member. After you have all your 2024 individual income identified and supporting documentation such as W2s obtained, use the income-type list to identify which of your income types qualify. Sum together your 2024 qualified income.
Income type that qualifies for Michigan Income Tax Exemption
- Prorated Percentage-The letter would have identified the prorated percentage of active 2024 RTM monthly status.
Multiply the qualified income total by the prorated percentage amount. The result will be your tax-exempt income as an RTM member.
For example, if you held active RTM status for 10 out of the 12 months. Your prorate percentage for 2024 active RTM status would be 10 /12 = .8333. This means you may claim exemption on 83.33% of your taxable income.
The RTM income tax exemption benefit can only be claimed at the prorated percentage for the number of months that the Tribal Member held active status on the RTM list.
- On the Schedule 1 tax form, on page 1, line 20, include the result from item 2.
This income will be subtracted from taxable income on the MI-1040 schedule and therefore the MI-1040 return.
- Finish completing Schedule 1, and then MI-1040, and finally, form 4013.
The previous filing instructions are only in reference to the tax filing regarding your RTM status. All other filing instructions should be followed as provided by the State of Michigan including but not limited to the 2024 MI-1040 return and corresponding instruction document, the 2024 Schedule 1 form and corresponding instruction document, and the provided 2024 4013 form. The corresponding instructions for the MI-1040 and Schedule 1 along with additional 2024 Michigan tax forms are found at the following website.
https://www.michigan.gov/taxes/iit-forms/2024-individual-income-tax-forms