Do I need to file Mich taxes on a bonus I received in 2018 from my employer that I retired from, when I moved to Wash state in 2017?

[jodiemove18]

I retired in Sept 2017, moved to Wash state in Dec 2017. The bonus was sent to me Mar 2018 with withholding for Mich. I had already changed my withholding to Wash and there is no state income tax. Do I need to file Michigan income tax when I didn't live in Michigan ?

[Cindy0H · Accepted solution]

Yes, you need to file a Michigan Nonresident return. Here is what the Michigan Department of Revenue states:

Bonus pay, severance pay, deferred income, and any other amount accrued while a Michigan resident are subject to Michigan tax no matter where you lived when you received it.

Use Schedule NR to figure your Michigan taxable income. You must pay Michigan income tax on the following types of income:

Salary, wages, and other employee compensation for work performed in Michigan.

Income (including dividend and interest income) from an S corporation, partnership or an unincorporated business, or other business activity in Michigan.

Here is the link to the Michigan instructions:

https://www.michigan.gov/documents/taxes/MI-1040_Book_no_forms_642357_7.pdf