Moved to Ohio from Michigan mid year - How to file State Income Taxes

Forum|Forum|3 years ago
February 1, 2023
2 replies
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I moved to Ohio in July from Michigan, however, still work remotely in Ohio for same Michigan company. I received one W2 with all income taxed in Michigan, not Ohio. When I file, do I split the income proportionately between the 2 states for the time I lived in each state or list all income in Michigan as the W2 shows?

tmunoz

Level 13

When you file, in the My Info section, you will list your address as the Ohio address as of Dec, 31, 2022 and check that you lived in another state. This will prompt questions about when you moved. You will need to file Part Year Resident returns for both Ohio and Michigan and they will both ask you to allot the income between the states based on where the work was performed. So for the time you were physically in Ohio, you will owe state taxes there, even if the home office is in Michigan.

mcountegAuthor

Level 2

Only the Michigan portion of Turbo Tax asked about the portion of these wages that is reportable to Michigan. In the more information part it stated; "Part-year residents enter salaries and wages received for the period you were a Michigan resident plus any wages earned in Michigan after your residency changed."

Hal_Al

Level 15

The Ohio portion, of the program, uses the W-2 to allocate wages between states.

"wages earned in Michigan after your residency changed" does not mean wages from a MI employer; it means you physically worked in MI.

Hal_Al

Level 15

Split the income proportionately between the 2 states for the time you lived in each state.

You will probably have to use a work around to get TurboTax to prepare the two state returns. At the w-2 screen split the boxes 15-20 W-2 info into 2 lines. On the 1st line leave MI in box 15 but change box 16 to what it should be; leave the Mi withholding in box 17. On the 2nd line put OH in box 15 and the OH portion in box 16; leave box 17 blank..

You may want to consider mailing in a paper return, to MI, so you can attach an explanation statement.

Ideally, you should try to get a corrected W-2 from your employer made out that way.