topic Re: Multiple States, Where do I file in State tax filing

Multiple States, Where do I file

markakalt — Sat, 06 Mar 2021 23:14:13 GMT

Hi,

Due to Covid I worked remotely. My employer is in Maryland and my W2 has Maryland taxes withheld for the year. I lived in Maryland 1/1/20 - 3/20/20, I think I need to file a Maryland Part year resident to get a refund for my tax withholding. The issue is I moved to Michigan, my parents home, from 3/21/20 - 10/31/20, Do I file a Michigan Part year resident tax return for the income I earned from my Maryland job during that time period? Michigan wants to charge me a penalty for not paying estimated taxes, do I need to pay it? I then moved to Florida from 11/01/20-12/31/20. No Florida income taxes, easy or do I owe Michigan for those two months because I lived in Michigan for more than 6 months during the year. Also which state do I pay taxes to on Dividend and Interest income? Thanks.

Re: Multiple States, Where do I file

MaryK4 — Sat, 06 Mar 2021 23:38:28 GMT

You will need to file for Maryland and Michigan. In general, you pay tax to the state where you worked when you earned the money. For 2020, some states had special rules in place if you worked from home due to Covid-19. Michigan is not one of those states.

You will have to determine your state residency (What is my state residency status? - TurboTax). Because you were not in Michigan long, and lived with your parents, it does not seem you became a MI resident, but it is based on many factors including your intent.

Re: Multiple States, Where do I file

markakalt — Sat, 06 Mar 2021 23:50:18 GMT

Should I file in Michigan only for the time I was living in Michigan, around 71/2 months(technically making me a resident of Michigan, lived 183 days or more), or do I need to file in Michigan for Income I earned while living in Florida. I did not live in Florida long enough to be considered a Resident. But it does not seem fair that I pay Michigan Taxes on money earned while living in Florida.

What about Interest and Dividends, Do I pay to Michigan and Maryland based on the % of time I lived in each state, they were paid at multiple times throughout the year

Thanks

Re: Multiple States, Where do I file

ToddL99 — Sun, 07 Mar 2021 17:04:13 GMT

If your move to FL was "permanent", then you would be a FL resident even if you were only in the state for a few months (or a few days).

As a FL resident, you would file a part-year resident MI return reporting the income earned while you were a resident of MI. That would also include whatever interest and dividends were paid to you while living in MI.

Your FL income would not be subject to MI state tax, and that would include interest and dividends were paid to you while living in FL. FL has no income tax, so you wouldn't need to file a state return for FL.