ToddL99
Expert Alumni

State tax filing

Strictly interpreted, the chart posted above( Use this chart to determine if you are required to file Michigan Individual Income Tax return) indicates you have to file a MI non-resident return - only because you have have to file a federal return and have income "attributable" to MI..

 

Since you work in MI, your unemployment compensation comes from the state of MI (the MI unemployment insurance fund). That unemployment income is, therefore,  "attributable" to MI.

 

You probably won't owe any tax, since MI recognizes the federal decision to exempt up to $10,200 of 2020 unemployment compensation from taxation. 

 

FYI - The "failure to File" penalty in MI is based on your unpaid tax - it you don't owe any tax and don't file, your penalty will be "0"

 

From What are the penalty charges for failure to file or pay?: Penalty is 5% of the total unpaid tax due for the first two months or portion thereof. After two months, 5% of the unpaid tax amount is assessed each month. The maximum late penalty is equal to 25% of the unpaid tax owed.