I am a college student with residency in Michigan but I live in California. All my income earned was earned in California. Why do I owe money to the state of Michigan?

[pdog22]

I don't even have a return from Michigan. I'm so confused.

[DanielV01 · Accepted solution]

You must file a Michigan return.  Because you are a student, your Michigan residency has not changed.  Therefore, California taxes you as a nonresident and Michigan taxes you as a resident.  On the Michigan return, you will receive a credit for taxes you must pay to California on that income.  However, California's tax is not very much on lower income amounts.  It is possible that not very much credit could be applied on your Michigan return as taxes paid to another state.  This year your result is probably what you see.  You can request, however, for any California employers to withhold Michigan tax.  If they are unable to do so, then you can prepare estimated payments to Michigan to help lower any tax due.

[pdog22]

That really stinks. Thank you though for your help.

[DanielV01]

I understand.  But I'm happy to be of assistance and hope that this can prepare you for next year.

[pdog22]

Also, on my tax returns, what address should I be using then? Michigan or California?