If I live in Ohio and work in MI, I pay only for Ohio and Toledo, taxes on my W2 & no taxes on my 1099. Do I have to pay MI state & local on either the W2 or 1099?

Taxes are only taken out for where I live (Ohio, Toledo). I am wondering if I need to pay Michigan their state taxes? And if I need to pay their local taxes?

My employer is my W2 and I have freelance work on a 1099- both are the same situation.

posted

Michigan and Ohio have tax reciprocity, but only with regard to W-2 wages. Therefore your W-2 wages are taxable by your resident state of Ohio, not by MI.

But if your 1099-MISC income was earned in MI, it is taxable by MI.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.