I am trying to help my sister out because we had a debate whether or not they need to pay Michigan income taxes. She and her husband own two houses, one in Michigan and another house in Florida. Her husband has declared residency in Florida while my sister is still a resident of Michigan. (She has a Michigan drivers license while he has a Florida drivers license). They claim the property tax exemption on their house in Michigan only. They both are retired and get social security along with rental income from a Florida condo that they still own.
I think for tax purposes, they claim that they live Florida so that they don't have to pay Florida state income taxes. However, they do not file nor pay any State of Michigan income taxes. I think that they since my sister is still a Michigan resident, they need to file Michigan income taxes even though her husband claims to be a resident of Florida. They file as married, filing jointly. If it matters, they both live together and travel between Michigan and Florida. Whats your opinion on this situation? Should they be required to file a state tax form in Michigan?
