State Of Michigan - Estimated Tax Payments

The Michigan Dept. of Treasury will provide an automatic waiver of all penalty and interest related to estimated taxes owed by taxpayers who received unemployment benefits during tax year 2020. Estimated tax payments generally aren’t required because sufficient tax is required to be withheld on income earned by the taxpayer. The receipt of unemployment benefits (a source of income not subject to mandatory tax withholding) therefore presents an estimated tax payment obligation not anticipated by many individuals when 2020 began. For those taxpayers, therefore, the department is waiving penalty and interest related to the requirement to pay quarterly estimated tax payments.