To make sure that you are complying with the Michigan Department of Treasury guidelines, take the time to familiarize yourself with the tax laws before you begin working on your return.http://www.michigan.gov/taxes 

The state of Michigan subjects most kinds of income to state taxation. This includes all forms of earned income, such as wages or salaries received from employment and the net earnings from self-employment. Some sources of unearned income, such as interest, dividends, and capital gains are also taxable by Michigan.http://www.michigan.gov/documents/taxes/MI1040book_341323_7.pdf 

To start preparing your Michigan return, you will need to collect all of your necessary information for the tax form. This will include the following:

1. Your Social Security number
2. Your complete mailing address
3. The full name and Social Security number of your spouse, if you will be filing a joint tax return
4. Your total earned income received during the tax year––If you are employed, this will be reported to you on Form W-2 or Form 1099 as your total taxable wages. If you work for yourself, you will need to total your gross earnings and then subtract the amount of qualified business expenses you can claim.
5. Your total unearned income that is subject to taxation in Michigan––Some types of unearned taxable income include unemployment compensation, lottery winnings, bank interest, and retirement distributions.
6. The amount of state income taxes that you have already paid––If you are employed, this will appear on your Form W-2 as state taxes withheld. If you are self-employed, this will be the total of any estimated state tax payments you made.
7. A copy of your completed federal income tax return, if you will be filing one 

You will use the amount of your federal adjusted gross income, or AGI, as the starting point for your Michigan return. So if you will be filing a federal tax return, complete that form before you begin your state return. If you will not be filing a federal return, you may wish to ask a tax professional for assistance calculating your federal AGI.http://www.michigan.gov/documents/taxes/MI1040book_341323_7.pdf  

The state tax form you will need to complete is entitled Form MI-1040 "Michigan Individual Income Tax Return." If you have access to the Internet, you can download this form and the accompanying instructions from the Michigan Department of Treasury website.http://www.michigan.gov/documents/taxes/MI1040book_341323_7.pdf  If you don't have Internet access, you can generally obtain a paper copy of the form and instructions from your local library.  

Consider filing electronically if at all possible. E-filing is a more convenient way to prepare your return than paper filing and will help you to receive any refund you are due up to eight weeks earlier. Depending on your income level, you may even qualify to file your return electronically for free. If you will be using tax software to prepare your federal return, you will generally have the option to include your state return for an additional fee. 

To file your Michigan return by mail, you can download a web fill-in version of the tax form and complete it on your computer. Or if you prefer, you can print the form and fill it out by hand. If you choose to manually prepare your return, be sure to write legibly and use black ink to avoid delays in processing.http://www.michigan.gov/documents/taxes/MI1040book_341323_7.pdf  

Begin the form by entering your full name and Social Security number as well as your spouse's, if applicable. Complete the address section and then select your filing and residency status.http://www.michigan.gov/documents/taxes/MI-1040_341136_7.pdf   

Before you go any further with your state form, stop and read the form instructions carefully. The instructions will explain any adjustments you may need to make to income to account for taxable income in Michigan. You can also find out about any state tax credits you qualify to claim. If you get stuck at any point in the form, you should stop and read the corresponding section in the instruction booklet.http://www.michigan.gov/documents/taxes/MI1040book_341323_7.pdf   

On line 9, enter the amount of dependent exemptions you claimed on your federal return and then make any adjustments for additional exemptions. Carry the amount of your federal adjusted gross income from your Form 1040 over to line 10 of your Michigan return. Make any income adjustments necessary on lines 11 through 13 to arrive at your income subject to tax on line 14.http://www.michigan.gov/documents/taxes/MI-1040_341136_7.pdf 

Subtract your exemption allowance to calculate your actual taxable income in Michigan on line 16. Consult the tax table located in the tax form instructions to assess the amount of state tax due on your taxable income bracket. On the remaining lines, deduct any eligible state tax credits and state income taxes paid through withholding or estimated tax payments. What remains afterward will be either the amount of tax you overpaid (refund) or the amount you underpaid (balance due).http://www.michigan.gov/documents/taxes/MI-1040_341136_7.pdf  

If you are due a refund, you have the option to receive your payment via direct deposit. Simply enter your bank's routing number and your personal account number at the bottom of page one of the Michigan return. Sign and date the return and have your spouse do the same.http://www.michigan.gov/documents/taxes/MI-1040_341136_7.pdf  Make a copy of the completed form to keep.  

If you have a balance due, write out a check or money order for the amount of your balance and submit it with the completed return to the address stated on the form. Be sure to remit both before April 18, 2011.http://www.michigan.gov/documents/taxes/MI1040book_341323_7.pdf  If you will not be able to file your Michigan return before the deadline, consider learning how to get a state tax extension in Michigan.