Do I have to file taxes in Michigan as a resident even though I lived and worked entirely in Maryland for 2018? should I file resident or non-resident taxes in Maryland?

[lukeonthemove]

I am a Michigan resident who lived and worked in Maryland all of 2018. I have been living in Maryland since January 1st, 2018, and I have been working in Maryland where I receive a taxable stipend/scholarship payment from a educational institution in Maryland. I have been paying estimated quarterly federal and Maryland tax payments for all of 2018. Do I have to file taxes in Michigan even though I did not live there or work there in 2018? I did received a W2 for $40 worth of wages earned in Michigan for the tax year of 2018 though.

should I file resident or non-resident taxes in Maryland? 

Thank you for your help

[DanielV01]

Michigan law considers you a Michigan resident if you are a student and your intention is to return to Michigan after school is complete.  School is considered a temporary absence that does not change your residency.  If this describes your situation, you will file a Michigan resident return.  Michigan is your domicile state and will give you a credit for the tax you pay to Maryland on the Maryland return.

Whether or not you file a resident or a nonresident return in Maryland depends if you maintained a residence.  College housing is not maintaining a residence.  If you did maintain a residence, Maryland considers you a statutory resident because you are physically present in Maryland more than 183 days while maintaining a residence in Maryland.  If you do not maintain a residence, you are a Maryland nonresident.

Either way, you will prepare the MD return first, and then the MI return so that TurboTax transfers the credit for the tax you pay to MD on your MI return