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de-m
Returning Member

how to handle state taxes when retiring to another state

I retired in September 2022 and moved from Michigan to Ohio.  In February 2023 I received a profit sharing check and box 15 of my W-2 shows MI for the state income tax.  Technically the money was compensation for when I worked and lived in Michigan for the year 2022 and is always paid on the last day of February of the next year.  How do I handle my state taxes?  Do I have to file both Michigan and Ohio state taxes?

The help box from turbotax says the following, "

If you paid taxes to a state other than Ohio during the year, you may receive a tax credit on your Ohio state taxes. That way, you won't be taxed twice on the same income.

To get the credit, you need to complete your taxes in the other state first."

Turbotax allowed me to enter the amount without filing Michigan taxes, so I'm pretty confused and my address on my W2 had my correct Ohio address and not my old Michigan address so I'm wondering why they didn't just give the state tax portion to Ohio.

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1 Reply
AnnetteB6
Expert Alumni

how to handle state taxes when retiring to another state

If there were any Michigan state taxes withheld from your payment, then the only way to get those refunded would be to file a non-resident Michigan return.  If no taxes were withheld, but the state is simply shown on the document, then no Michigan return would be required.  

 

You should not have any entry in the credit for taxes paid to another state unless you do file another non-resident state tax return.  

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