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Level 1
June 1, 2019
Question

Even if i'm living in indiana and working in michigan, why am i paying taxes in michigan?

  • June 1, 2019
  • 1 reply
  • 22 views
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1 reply

KrisD15
Alumni - Intuit
June 1, 2019

Michigan and Indiana are reciprocal states.

If you live in Indiana and work in Michigan, your employer should be withholding Indiana tax, not Michigan.

You need to file form WH-47, "Indiana Form WH-47 Certificate of Residence" with your employer.

If you had Michigan tax withheld in 2016, you will need to file a non-resident Michigan tax return for a refund, and file a resident Indiana tax return to properly pay your state tax. 

In TurboTax, do your Federal return first, then the non-resident state (Michigan), then the resident state (Indiana).

If you work in an area that has a local tax, such as Grand Rapids, you are liable for paying the local tax. 

(edited 2-20-17)

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