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Level 1
June 3, 2019
Solved

I am a resident of Michigan and received 3rd party sick for all of 2018 from my employer in Kansas which state do I pay taxes to?

  • June 3, 2019
  • 1 reply
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I did not work at all in 2018.

Best answer by DanielV01

Michigan, (if you are taxed at all on the income).  Your resident state (where you live) taxes your income no matter where you earn it.  Your nonresident state taxes the income you earn working in the state.  Since you did not work in Kansas, your income is only taxed where you live:  Michigan.

If, however, Kansas taxes were withheld, then you would need to file a Kansas return reporting your income as zero (because it is 3rd party sick pay), and obtain a refund for the taxes withheld to Kansas.  You still must pay tax to Michigan on the income if it is taxable.  (If there is a Box 12 code of J on the W2, the income is not taxable).

1 reply

DanielV01
DanielV01Answer
Level 15
June 3, 2019

Michigan, (if you are taxed at all on the income).  Your resident state (where you live) taxes your income no matter where you earn it.  Your nonresident state taxes the income you earn working in the state.  Since you did not work in Kansas, your income is only taxed where you live:  Michigan.

If, however, Kansas taxes were withheld, then you would need to file a Kansas return reporting your income as zero (because it is 3rd party sick pay), and obtain a refund for the taxes withheld to Kansas.  You still must pay tax to Michigan on the income if it is taxable.  (If there is a Box 12 code of J on the W2, the income is not taxable).

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