KrisD15
Expert Alumni

Education

The distribution is income attributable to Michigan sources. 

therefore the recipient would need to file a non-resident Michigan tax return to claim that income. 

 

Since it is taxable MI income, the MI rules would apply. 

There would be no NC state credit for taxes paid to another state since the NC return will not claim the amount of the distribution because it was used for expenses recognized by NC.

 

 

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