topic Will I get double taxing when I move to Michigan and my employer is in CA? in State tax filing

Will I get double taxing when I move to Michigan and my employer is in CA?

djsidfoaidafsf — Sat, 08 Aug 2020 17:59:54 GMT

Hi all,

Due to my company's announced WFH until July 2021, I am thinking of moving to Michigan for at least the first 6 months for 2021 to stay with my family. My employer is in CA.

Will I get a double tax on income and RSU for the move? Is taxation complicated?

Thanks!

Re: Will I get double taxing when I move to Michigan and my employer is in CA?

djsidfoaidafsf — Sat, 08 Aug 2020 18:02:03 GMT

I am on W-2

Re: Will I get double taxing when I move to Michigan and my employer is in CA?

TomD8 — Sun, 09 Aug 2020 15:47:40 GMT

If you move to Michigan for a temporary purpose, while maintaining your primary home (your domicile in tax terminology) in CA, then for tax purposes you would remain a resident of CA, and ALL your income would remain taxable by CA, including income earned outside CA.

Income you earn by physically working in MI is taxable by MI, even if you are a domiciliary resident of another state.

Thus, if you maintain CA residency and have income earned in MI, you would have to file a non-resident MI tax return in addition to your home state CA tax return.

In that situation, you'd be able to take a credit on your CA return for the taxes paid to MI, so you wouldn't be double-taxed.

The tax situation would be different if:

1. You permanently moved to MI, abandoning your home in CA; or

2. You maintained CA residency but lived in MI at least 183 days during the tax year.

Post back if either of those situations apply.