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New Member
posted Jun 4, 2019 1:21:26 PM

I live in TX but work online in MI & trying to file nonresident state return. The Help on the page says to enter all earnings; the community says put $0. Which way?

When I enter $0, it shows a $159 refund, which is what was withheld. When I enter the total, I owe $344 or so.

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1 Best answer
Expert Alumni
Jun 4, 2019 1:21:27 PM

When you work remotely (or telecommute) for a company outside your resident state, in most cases you should not pay State Income taxes to the state where the company resides.

In most states that tax wages, an employee’s wages for personal services are allocated based on where the services are rendered. There are a few exceptions, but Michigan is not one of them.

For this reason, you had zero Michigan-sourced income and should not pay Michigan state income tax. You would be due a refund for all state income taxes that were withheld.

You may wish to contact your employer regarding the withholding from your wages. They may have more specific information on this topic.

1 Replies
Expert Alumni
Jun 4, 2019 1:21:27 PM

When you work remotely (or telecommute) for a company outside your resident state, in most cases you should not pay State Income taxes to the state where the company resides.

In most states that tax wages, an employee’s wages for personal services are allocated based on where the services are rendered. There are a few exceptions, but Michigan is not one of them.

For this reason, you had zero Michigan-sourced income and should not pay Michigan state income tax. You would be due a refund for all state income taxes that were withheld.

You may wish to contact your employer regarding the withholding from your wages. They may have more specific information on this topic.