Fed/state e-filing for tax year 2005 is underway.

If you are e-filing both the federal and Michigan returns at the same time, Michigan can view information that is entered in the preparer notes area for the federal return. Using the preparer notes areas for both federal and state returns may reduce the need for the Department to write to the taxpayer for additional information. 

The federal preparer notes area can contain up to 4,000 data characters.  The Michigan preparer notes area can contain up to 56 characters.  Michigan hopes to expand their preparer notes next year.

Examples of information that can be included in the preparer notes follows:

• Enter "Combat Zone" if taxpayer is serving in a combat zone.
• Enter "Federal Extension granted to MM-DD-YYYY" if the taxpayer has been granted an extension to file their federal return.
• Explanation of a large subtraction.
• Explanation of a miscellaneous subtraction.
• Explanation of how a property tax credit is being filed when return is "Married filing separate".  Especially when spouses maintain separate addresses.
• Explanation of a property tax credit and/or home heating credit claim when two or more taxpayers are sharing a home.
• Explanation of how taxpayer met expenses when household  income is very low.
• Additional MI-1040CR-7 dependents beyond those listed on the form.
• Explanation if using a mailing address other than taxpayer's residence.
• City of Toledo tax.
• Co-owners share of property taxes.
• Explanation of multiple credits filed from the same address.
• Explanation of multiple family dwellings.
• Explanation of taxpayers paying room and board / property tax credits.
• Farmland agreement # __________ reduced for exception by ___ percent.
• Farmland signed distribution on file.
• Identify where prior year farmland refund is included on federal return.

There are two additional qualified charitable organizations for the tax year 2005 that taxpayers could have donated automobiles to and received a nonrefundable Michigan tax credit, that were inadvertently omitted from our 2005 MI-1040 Instruction Booklet.

The two additional qualified charities are:

705 - Goodwill Industries of Northern Michigan, Inc.
905 - Goodwill Industries of Southeast Michigan, Inc.

These two charities are in addition to the following charities that are listed on page 12 of the 2005 Michigan 1040 Instruction booklet:

105 - Goodwill Industries of Mid-Michigan, Inc.
202 - Goodwill Wheels to Work
406 - Goodwill Industries of Greater Detroit
601 - Goodwill of Southwestern Michigan, Inc.
604 - Good Samaritan Ministry (Holland) - Also known as Carlink, Inc.
803 - Goodwill Industries of West Michigan, Inc.

Note:  Donors must retain their Form 4284, Donor Tax Credit Certificate for Donated Vehicle in case it is requested by Treasury as evidence of the donation to a qualified charity.

Taxpayers must have received either the Michigan Form 4284, Donor Tax Credit Certificate For Donated Vehicle, Internal Revenue Service Form 1098-C Contributions of Motor Vehicles, Boats And Airplanes, or other substantially similar written acknowledgment from the qualified charity to claim the credit.