Dealing with non-resident - remote work- state returns

[Steven8106]

My Wife and I both work remote from Michigan, 100% remote for companies in Missouri and Georgia (non residents).

When going through the Intuit premier software we added the extra states in our information because we earned income from these states. We purchased the extra state returns and entered in the portions of our earning applicable to the MO and GA returns.  Both of our w-2's only had taxes taken out for out residency state, MI. Once the earning were entered in for MO, we started to see a refund for Michigan go up. The return for Michigan was not as high as the amount owed for MO.

Does this sound like I am going about this correctly? When money is owed to another non-residency state, does your residency state refund you the percentage of taxes you paid it? Since MO is higher income tax, I seem to owe more than I paid to Michigan (I assume).

Thanks for any feedback!

[TomD8]

Neither MO nor GA tax non-resident remote workers who never physically work within their borders.

That is why your employers did not withhold taxes for those two states.  You have no tax obligation to either state.

You need file only your home state MIchigan return.  Your work incomes are 100% taxable by your resident state of Michigan, and not by any other state.

In the Personal Info section of TT, answer NO to the question about having income from other states.

[Steven8106]

Thanks for the feedback.

in the section where is asks , did either of you make money in any other states? There is a sub stated condition that say "Also select Yes if you made income from any of the below: * Living in one state and working in another".

How am I supposed to interpret that clause?

[Steven8106]

Also under the remote work section of the MO forms it asks to enter remote work income. Explained as:

Remote Work for a Missouri Employer

If you performed remote work for a Missouri employer outside of Missouri during 2023, the portion of income earned while working outside Missouri is not taxable to Missouri. Amounts entered as remote work income will be subtracted from Missouri sourced wages transferred from your federal return.

When I enter in the full amount of earnings as remote income, the MO amount owed doesn't lower either.

This is why I am confused as to whether I need to mark this as income from another state or not.

[TomD8]

"Living in one state and working in another" means physically working in another state.  For example, a person who lives in Indiana and commutes daily to his job in Ohio works IN Ohio.  A common thing for people who live near a state border.

In your case, your work is performed entirely IN Michigan, not "in" any other state.  If you happened to have to travel to GA or MO for work, then you would have income IN those states.