My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Forum|Forum|7 years ago
June 6, 2019
4 replies
32 views

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TurboTax Deluxe Online

Best answer by TomD8

Assuming your only MI-source income is your wife's W-2 wages:

When you do the MI non-resident return, enter zero as the MI income. That will result in a full refund of the incorrectly withheld MI taxes.

Your wife should also file Form MI-W4 with her employer, indicating that she is exempt from MI withholding because she is a resident of Ohio, a reciprocal state. Here's a link to the form: https://www.michigan.gov/documents/taxes/MI-W4_370050_7.pdf

CarolynM

Level 12

Were MI or OH taxes withheld on her W2?

aodc4225-Author

Level 2

Michigan was withheld and is listed on the w2

TomD8

Answer

Alumni - Champ

Assuming your only MI-source income is your wife's W-2 wages:

When you do the MI non-resident return, enter zero as the MI income. That will result in a full refund of the incorrectly withheld MI taxes.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

aodc4225-Author

Level 2

Thank you that makes sense and changed the refund amount.

CarolynM

Level 12

Because Michigan and Ohio have state tax reciprocity, you should be receiving a refund for the taxes paid to Michigan.

Make sure you are reporting your residency as you home in Ohio.

She may owe city taxes which are not covered by the reciprocity agreement, but she doesn't owe state taxes to MI.

You need to complete the Michigan Non-Resident Income Tax return before the Ohio Resident Income Tax return to ensure you receive credit for the taxes paid to the other state.

For more information, follow this link:

https://www.michigan.gov/taxes/0,4676,7-238-75545_43715-154059--,00.html

aodc4225-Author

Level 2

Thank you that all makes sense but I don’t understand why TurboTax is stating we will only receive a refun from Michigan for a couple hundred dollars. I have our residency as Ohio and I don’t understand how the software is calculating this? Also there are no city taxes where she works.