Another complex tax situation

[mcuffman]

I had a job in OH until June 2020 and moved to MI Fall 2020.  I received a W-2 for 2020 for the job in OH and completed my returns for 2020 for OH and MI without a hitch.

However, due to an overpayment of health insurance premiums for the job in OH in 2020, the employer issued me a check in 2021 for less than $100 AND a W-2 for 2021 for the income.

How do I handle this?  I did not work in OH nor was not a resident of OH at all in 2021.

Any help on this would be deeply appreciated.

[ErnieS0]

File a nonresident Ohio return and report the income. It’s Ohio income because you probably took a pre-tax deduction on your federal and Ohio returns last year.

You can’t amend last year’s OH return because you received the W-2 in 2021.

You can claim a credit on the Michigan return for tax paid to OH.

Prepare your OH nonresident return first and TurboTax will carry the money to MI.

[TomD8]

OH and MI have tax reciprocity for W-2 income.  Reciprocity means that MI residents are not liable for OH state income tax on W2 income.  It is not necessary to file a non-resident OH return unless OH taxes were mistakenly withheld from that check and you wish to have them refunded.

The income is taxable by your resident state of MI.

[mcuffman]

Thanks for your answer!

[mcuffman]

Thanks for your reply!  That your answer is premised on the reciprocity between OH and MI makes yours a better answer than the other I received, I believe.  We're not talking about a lot of money, but it is important to me that I get it right.  Thanks again!