Problem with non resident filing in Michigan for capital gains

Forum|Forum|4 years ago
August 5, 2022
8 replies
34 views

Hi. I am a KY resident and had an investment property in MI which was sold. So I am working on my non-resident return for Michigan.

My problem is that turbotax is showing that I have a bunch of other capital gains reported as Michigan income, which are not MI income.

Digging into this problem, I see that the gains in question were reported on my federal form Schedule D, lines 1a and 8a. I do not see a way to tell Turbotax that these gains are not Michigan income.

This seems like a bug, does anyone know a work around?

Also I am doing a non-resident return for AZ but I don't seem to have the same problem there.

Thanks for any advice!

NCperson

Level 15

@roytoutant - let's start with a review of Michigan Schedule NR - there are 3 columns - Total income, MI income and all other state income. Is everything in the correct columns? (just trying to verify that it's really a problem)

Is Box 4a (nonresident) checked?

roytoutantAuthor

Level 3

Thank you for the response. One form NR, box 4a is checked.

Also there are three columns as you mentioned.

On line 6 of form NR, it is showing gains for Total Income, Michigan Income, and Other States income. It is showing some gains as Michigan income which actually came from other states. Those gains are the ones that were reported on federal form Schedule D, lines 1a and 8a.

Note that I had some other gains reported individually on Federal from 8949 which are being correctly reported as "Other States Income". For those specific gains, turbotax allowed me to specify whether each gain was Michigan income, or not.

So I am not sure how (if even possible) to specify the gains from schedule D as Other State Income.

NCperson

Level 15

@roytoutant - what does the capital gains income that are in the Michigan column represent? can you go back to those input forms and review everything? is that the investment property gain?

did you mean Line 8 (capital gains) of Schedule NR and not Line 6 (dividends and interest)?