Solved: I have gambling winning in Michigan but live in Indiana. do i have to file taxes in Michigan?
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New Member

I have gambling winning in Michigan but live in Indiana. do i have to file taxes in Michigan?

 
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New Member

I have gambling winning in Michigan but live in Indiana. do i have to file taxes in Michigan?

Yes, you will have a nonresident filing requirement in MI for any MI-source income including gambling winnings (the state's reciprocal agreement with IN does not include gambling winnings).

According to the MI Department of Revenue, any MI source income must be reported on MI-1040. Click MI filing instructions for more information.

Additionally, the Schedule NR instructions state that:

Nonresidents must include Michigan Income Allocation lottery winnings won after December 31, 1996, and winnings won from casinos or licensed horse tracks located in Michigan

You will need to file as non-resident for MI (for your MI source income only). You will also need to file a IN resident state tax return (for all income from all sources including MI). You will get a state tax credit in IN for any MI state taxes that you paid on your nonresident MI state tax return.

You will want to work on your non-resident MI state tax return first. You will then take a tax credit from your non-resident MI return on your resident IN state tax return. (Please note that you will only get a tax credit for your MI taxes up to the amount of IN taxes that would have been paid if the income was earned in IN). 

Just follow the TurboTax guide when working on your states (remembering to do your non-resident state return first) and TurboTax will do all the calculations for the credit to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797


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New Member

I have gambling winning in Michigan but live in Indiana. do i have to file taxes in Michigan?

Yes, you will have a nonresident filing requirement in MI for any MI-source income including gambling winnings (the state's reciprocal agreement with IN does not include gambling winnings).

According to the MI Department of Revenue, any MI source income must be reported on MI-1040. Click MI filing instructions for more information.

Additionally, the Schedule NR instructions state that:

Nonresidents must include Michigan Income Allocation lottery winnings won after December 31, 1996, and winnings won from casinos or licensed horse tracks located in Michigan

You will need to file as non-resident for MI (for your MI source income only). You will also need to file a IN resident state tax return (for all income from all sources including MI). You will get a state tax credit in IN for any MI state taxes that you paid on your nonresident MI state tax return.

You will want to work on your non-resident MI state tax return first. You will then take a tax credit from your non-resident MI return on your resident IN state tax return. (Please note that you will only get a tax credit for your MI taxes up to the amount of IN taxes that would have been paid if the income was earned in IN). 

Just follow the TurboTax guide when working on your states (remembering to do your non-resident state return first) and TurboTax will do all the calculations for the credit to your resident states return

Here is additional information about filing in multiple states (select "see more answer" to view the entire attachment)

 

https://ttlc.intuit.com/replies/3300797


View solution in original post

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