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Level 2
January 13, 2026
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Michigan out of state local tax credit

  • January 13, 2026
  • 1 reply
  • 19 views

I live in Michigan, my husband works for a Michigan company, but worked at an Indiana job site for a few months. We did not know there was a county tax there, and his employer did not take it out of his check. I know there is a Michigan credit for paying an out of state local tax, but can we claim it if it is paid with the Indiana return? If not can we claim it next year?

Best answer by Hal_Al

Expert Reviewed

Q. So even though the Indiana local county tax was not paid in 2025, I can claim the Michigan credit since it is going to be paid with my 2025 Indiana state tax return? 

A. Yes, since the county tax paid was for tax tear 2025.  What you can't do is claim that payment on your 2025 federal itemized deductions.  You'll have to wait to  when you file  2026 federal return, if you do itemize. 

Q. How do I add the Indiana return to my Michigan return?

A. You will have to mail your  Michigan return. 

1 reply

Hal_Al
Level 15
Level 15
January 15, 2026

Q. Can we claim it if it is paid with the Indiana return?

A. Yes

 

Q. If not can we claim it next year, instead?

A. No

 

Michigan will give you credit for that on the MI state return, but you have to attach a copy of the IN return, to show you paid it. 

MI residents and IN county tax https://ttlc.intuit.com/questions/3418266-i-live-in-michigan-and-work-in-indiana-i-m-being-charged-elkhart-county-tax-which-quadrupled-as-of-the-first-of-2017-is-there-a-way-to-get-a-refund-on-this-tax?jump_to=answer_5601220

 

Level 2
January 15, 2026
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