topic dual state taxes in State tax filing

dual state taxes

jaybird2719 — Wed, 29 Jan 2020 18:30:02 GMT

I am filing my taxes and have discovered a peculiarity, when entering my wifes W-2's. We live in Michigan, 100 % of the time. I work in Mi and my wife works across the border in WI. Until this year, her company has always, just taken out MI taxes. This year, her company changed hands and they started taking out taxes in both Mi and Wi. The Mi taxes were the bulk of the deductions, with a small percentage for Wi. While entering the W-2's, it shows I owe the state of Wi taxes due. This has never happened before, and the company always deducted and paid the taxes to the state of MI, our state of residency. Is this something new and do I need to now file a Wi retrurn as well. She has worked in WI well over 25 years and we've never had to file in Wi before.

Re: dual state taxes

KatrinaB48 — Wed, 29 Jan 2020 19:04:20 GMT

Wisconsin and Michigan are reciprocal states, so your wife will need to file an exemption form with her employer to stop Wisconsin taxes from being withheld. Please view the reciprocal state agreements to learn more.

Re: dual state taxes

jaybird2719 — Mon, 03 Feb 2020 23:51:51 GMT

How do I go about getting the taxes she paid to Wisconsin?

Re: dual state taxes

KathrynG3 — Tue, 04 Feb 2020 15:18:40 GMT

It will be listed on your wife's W-2. Look toward the bottom of the form. State taxes begin in Box 15.

For this year, you would enter Wisconsin in TurboTax as a nonresident. Then, enter Michigan.

You would follow the prompts through the program. When you are answering the Michigan interview, expect there to be questions toward the end of the interview about taxes paid to any other states.

Answering these questions should give you a credit in Michigan.

However, since the states have reciprocity and therefore no tax should have gone to Wisconsin, you may run into more questions through the interview. If you do, post on this thread and tag me. I can help more.

Alternatively, you could tell the employer to issue acorrected W-2 and wait to get the corrected W-2 before filing.