All states that have a sales tax also have a companion tax for purchases that are made outside of those states; in Michigan this companion tax is called "use tax", this is a six percent tax that is due on catalog, telephone, and Internet purchases from out-of-state sellers, as well as purchases made within a foreign country while travelling and you intend on bringing those items back to Michigan. Use tax must be paid on the total price paid to the seller, including any shipping and handling charges.
To report use tax within the program, go to:
- State Section
- Michigan
- Edit
- Use Tax
For more information regarding Michigan use tax, please refer to MI-1040 instructions.