Company withheld state tax in wrong state

hpy1008yin · ‎March 27, 2020

I live and work in MI but the company erroneously withheld state tax in IN, a reciprocal state. Do I i) file a non-resident city and state return in IN and get the full refund, and ii) file a MI state return to pay taxes? Additionally, would I get a penalty from MI for not paying taxes during the year? Thanks!

KarenM90 · ‎March 27, 2020

I'd recommend that you contact your employer and have them make the correction.

If that is not possible, yes, file as a non-resident in IN and file all wages, correctly in MI.

If you end up with a penalty, you can request a waiver of it, which could be supported by a letter from your employer acknowledging that they withheld tax in a state you did not live or work in.

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View solution in original post

KarenM90 · ‎March 27, 2020

I'd recommend that you contact your employer and have them make the correction.

If that is not possible, yes, file as a non-resident in IN and file all wages, correctly in MI.

If you end up with a penalty, you can request a waiver of it, which could be supported by a letter from your employer acknowledging that they withheld tax in a state you did not live or work in.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Company withheld state tax in wrong state