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Level 2
posted Mar 28, 2021 5:39:16 PM

Moved to a state without income tax without telling my employer

i have a hypothetical scenario. let's say i don't tell my current employer in michigan that i have moved to texas and they withhold my state taxes for the whole of 2021 and report my income to Michigan state. Then in 2022 when i file my taxes, Will i able get my taxes (refund) back from michigan state when i file non-resident michigan state taxes that my michigan employer withheld ?

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9 Replies
Level 15
Mar 28, 2021 5:49:34 PM


@nishantgupta01 wrote:

i have a hypothetical scenario. let's say i don't tell my current employer in michigan that i have moved to texas and they withhold my state taxes for the whole of 2021 and report my income to Michigan state. Then in 2022 when i file my taxes, Will i able get my taxes (refund) back from michigan state when i file non-resident michigan state taxes that my michigan employer withheld ?


"hypothetical"  Is this a home work questions?

 

 

Level 2
Mar 28, 2021 5:51:30 PM

No. i am planning to do this and was wondering if it's ok to not to tell my employer or should i tell my employer that i am moving to texas.

Level 15
Mar 28, 2021 6:00:07 PM

Why would you not give your employer the new address?    How are you living in Texas and working in MI.

 

You probably could file a nonresident tax return for a refund of the excess withholding.

Employee Tax Expert
Mar 28, 2021 6:00:15 PM

No. If you are earned money in Michigan and/or had income attributable to Michigan , then your wages are still sourced in the state and you would be be liable for the tax. In this scenario, you would not get a full refund of taxes paid.

 

 

Am I required to file a Michigan Individual Income Tax Return MI-1040 if I am a resident of another state and I worked in Michigan?

 

@nishantgupta01

 

Level 15
Mar 28, 2021 6:07:13 PM
Level 2
Mar 29, 2021 11:44:59 AM

i will have to file a Michigan tax return but will i get a full refund? as i will be working in texas not working in michigan even though my employer is in michigan.

 

the website states "

Am I required to file a Michigan Individual Income Tax Return MI-1040 if I am a resident of another state and I worked in Michigan?

Yes. You must file a Michigan Individual Income Tax Return MI-1040 and pay tax on salary, wages and other employee compensation for work performed in Michigan.

"

 

 

It says "if am a resident of another and I worked in Michigan" but i will not be working in michigan, i will be working in texas.

 

Level 2
Mar 29, 2021 11:46:42 AM

why would i need to have the law change to get my money back from michigan state. i will not be working in michigan, i will be resident of texas and i will be working in texas. 

Level 15
Mar 29, 2021 2:54:12 PM

The law can change to your disadvantage.   For the details  see this   https://fortune.com/2021/01/25/work-from-home-income-taxes-where-remote-workers-pay-tax-covid-pandem...

Level 2
Mar 29, 2021 3:44:24 PM

Yeah. i hope that law doesn't change. this will be big problem for people who work remotely (different state) even before COVID started. They will have to pay taxes of their work state.