The Penalties section is used to report certain Michigan penalties, calculate underpayment of estimated tax penalties, and request penalty or interest relief when eligible.

Most taxpayers will not need to complete every section. Only enter information that applies to your situation.

Program Entry

Michigan Return → Penalties

First-Time Home Buyer Savings Program - Nonqualified Withdrawals

Form 5792 - First-Time Home Buyer Savings Program Nonqualified Withdrawals

Michigan allows taxpayers to claim certain tax benefits for contributions made to a First-Time Home Buyer Savings Account. If funds are withdrawn for a purpose that does not qualify under Michigan law, an addback and penalty may be required.

Select Begin to complete Form 5792.

Account Number

Enter the account number associated with the First-Time Home Buyer Savings Account from which the withdrawal was made.

Select Type of Nonqualified Withdrawal (NQW)

Choose the reason for the withdrawal from the available options:

Death or Disability of the Qualified Beneficiary

Select this option if the withdrawal occurred because of the death or disability of the designated beneficiary.

Disbursement of Assets in Bankruptcy

Select this option if the funds were distributed as part of a bankruptcy proceeding.

Transfer from One Account to an Account for the Benefit of Another Qualified Beneficiary

Select this option if the funds were transferred to another qualifying account for a different qualified beneficiary.

Hardship Withdrawal

Select this option if the withdrawal was made because of a qualifying hardship situation.

A Qualified Beneficiary or Their Spouse Is a Service Member Who Is Transferred or Deployed Out of Michigan on Active Duty Due to a Permanent Change of Station

Select this option if the withdrawal occurred because the beneficiary or spouse was transferred or deployed outside Michigan due to military service.

Other

Select Other if the withdrawal does not meet any of the exceptions listed above.

Addback of Nonqualified Withdrawal (NQW)

Enter the amount of the nonqualified withdrawal that must be added back to Michigan income.

This generally represents previously deducted contributions or earnings that no longer qualify for favorable Michigan tax treatment.

Penalty Amount

Enter any penalty resulting from the nonqualified withdrawal.

This amount will increase your Michigan tax liability.

Form MI-2210 Underpayment of Estimated Tax

What Is Form MI-2210?

Form MI-2210, Underpayment of Estimated Income Tax, is used to determine whether a taxpayer owes a penalty for not paying enough tax throughout the year through:

• Withholding
• Estimated tax payments
• A combination of withholding and estimated payments

Select Begin to complete the underpayment penalty calculation.

When Would I Need Form MI-2210?

You may need to complete Form MI-2210 if:

• You owe a significant balance due when filing your return.
• You did not make sufficient estimated tax payments during the year.
• Your withholding was not enough to cover your tax liability.

How Does This Affect My Return?

A calculated underpayment penalty will increase the amount of Michigan tax owed and may reduce any refund.

Penalty and/or Interest Relief Request

Michigan may waive certain penalties or interest when taxpayers qualify for relief due to specific circumstances.

Select Begin to determine if you qualify.

Federal Extension for Service in a Combat Zone

Are You and/or Your Spouse Eligible for a Federal Extension for Service in a Combat Zone?

Select Yes if you or your spouse qualify for a federal filing extension because of service in a combat zone.

Taxpayers who qualify for a combat zone extension may also receive relief from certain Michigan penalties and interest.

Select No if this situation does not apply.

Declared Disaster Zone Relief

Have You and/or Your Spouse Been Affected by a Declared Disaster Zone?

Select Yes if you or your spouse were affected by a federally or state-declared disaster area.

Michigan may provide penalty and interest relief to eligible taxpayers affected by a disaster.

If you select Yes, complete the following fields:

Address Affected by the Declared Disaster

Enter the street address located within the disaster area.

ZIP Code Affected by the Declared Disaster

Enter the ZIP code associated with the affected location.

City Affected by the Declared Disaster

Enter the city where the affected property or residence is located.

State Affected by the Declared Disaster

Select the state in which the disaster occurred.

Name of Disaster Zone

Enter the name of the disaster area or event for which relief is being requested.

Examples may include:

• Floods
• Severe storms
• Tornadoes
• Wildfires
• Other declared disasters

Describe How You Were Affected by the Disaster

Provide a brief explanation of how the disaster impacted your ability to timely file or pay your Michigan taxes.

Examples may include:

• Property damage
• Loss of records
• Evacuation
• Business interruption
• Other disaster-related hardships

How Does This Affect My Return?

Entries in this section may:

• Increase Michigan tax due if penalties apply.
• Calculate an underpayment penalty using Form MI-2210.
• Report a nonqualified withdrawal penalty using Form 5792.
• Request penalty and interest relief due to military service or disaster-related circumstances.

Notes

• Form 5792 is used for Michigan First-Time Home Buyer Savings Program nonqualified withdrawals.
• Form MI-2210 is used to calculate underpayment of estimated tax penalties.
• Penalty and interest relief requests do not automatically guarantee relief.
• Keep documentation supporting any military extension, disaster relief request, or nonqualified withdrawal reported on the return.
• Disaster relief requests should include detailed information about how the event affected your ability to comply with Michigan tax requirements.