Form 777 - Michigan Resident Credit For Tax Imposed By A Canadian Province - 2002
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1Michigan Department of Treasury
777 (Rev. 12-02)
Resident Credit for Tax Imposed
by a Canadian Province
For Tax Year
2002
Issued under authority of P.A. 281 of 1967. Filing is voluntary.
Name(s) as shown on your MI-1040
Social Security Number
Address, City, State and ZIP
Spouse's Social Security Number
PART 1
CONVERSION OF CANADIAN WAGES AND TAXES TO UNITED STATES CURRENCY
1.
Canadian income taxed by Michigan
1.
2.
Fringe benefits included in Box 14 of the T-4, not taxable in U.S.A.
2.
3.
Subtract line 2 from line 1
3.
4.
Multiply line 3 by the annualized conversion rate of 63.67% (.6367) (see inst.)
4.
5.
Total Canadian income from line 150 of your Canadian income tax return
5.
6.
Multiply line 5 by the conversion rate of 63.67% (.6367)
6.
7.
Divide line 4 by line 6 (percentage of Canadian income taxed by Michigan
%
to total Canadian income)
7.
8.
Multiply the Canadian federal tax (line 420 of Canadian return)
$__________________by the conversion rate of 63.67% (.6367)
8.
9.
Multiply line 8 by line 7
9.
10.
Multiply the provincial tax (line 428 of Canadian return)
$_____________ by the conversion rate of 63.67% (.6367)
10.
11.
Multiply line 10 by line 7
11.
12.
Contribution to Canadian Pension Plan from T-4, Boxes 16 and 17
12.
13.
Multiply line 12 by the conversion rate of 63.67% (.6367)
13.
PART 2
COMPUTATION OF MICHIGAN TAX
14.
Adjusted gross income from MI-1040, line 10
14.
15.
Canadian income taxed by Michigan from line 4, above
15.
16.
U.S. adjustments to Canadian wages (from U.S. 1040 lines 23-33a)
16.
17.
Subtract line 16 from line 15
17.
18.
Subtract line 17 from line 14 for Michigan source income
18.
19.
Additions from MI-1040, line 11
19.
20.
Add lines 17, 18 and 19
20.
21.
Subtractions from MI-1040, line 13
21.
22.
Subtract line 21 from line 20 for income subject to tax
22.
23.
Divide line 17 by line 22 for percentage of Canadian income to
total income subject to tax
%
23.
24.
Exemption allowance from MI-1040, line 15
24.
25.
Subtract line 24 from line 22 for taxable income
25.
26.
Multiply line 25 by the Michigan tax rate of 4.1% (.041)
26.
PART 3
ALLOWABLE CREDIT FOR TAX PAID CANADIAN PROVINCE
27.
Multiply line 26 by line 23 for Michigan tax on Canadian province income
27.
28.
Add lines 9, 11 and 13 for total tax paid in Canada
28.
29.
Adjustments to credit claimed on U.S. 1040:
29a.
Canadian portion of credit claimed on U.S. 1040, line 45
29a.
29b.
Canadian income taxed by Michigan from all U.S. 1116 forms
29b.
29c.
Gross Canadian income from all U.S. 1116 forms
29c.
%
29d.
Divide line 29b by line 29c and enter percentage
29d.
29e.
Multiply line 29a by line 29d for adjusted
amount claimed on U.S. 1040
29e.
30.
Subtract line 29e from line 28 for amount available for credit on MI-1040
30.
31.
Canadian provincial tax from line 11. Enter here and on form MI-1040, line 23a
31.
32.
Credit for tax paid Canadian province (lesser of lines 27, 30 or 31).
Enter here and on form MI-1040, line 23b
32.
ATTACH THIS FORM TO YOUR MI-1040 RETURN
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