The Schedule NR holds the answer. You said line 19 had the correct percentage. The $40k should not be prorated on that line. As a MI NR your tax is allocated but the income is calculated as a full year resident.
MI is among the majority of states that tax a nonresident or part-year resident using apportionment/ allocating the tax. The full income from everywhere is reported.
- MI will look at your total family income for the year and determine the tax on that amount.
- Then, they look at what percentage of the income was actually from MI.
- MI multiplies the percentage of NY income times the MI tax.
For example:
- MI tax on your federal income is $8,000
- But only 10% of your income was earned in MI
- MI tax liability will be 10% of $8,000 or $800.
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