You will need to submit Form W-220 to your employer to have them change your withholdings from Wisconsin to your resident state of Michigan. Since there is state reciprocity between these two states, you only need to pay state taxes within your resident state, not the state you work in. I recommend doing this as soon as possible so your employer only withholds Michigan state income taxes for 2021. Please see the following link for the blank form.
Nonresident Employee's Withholding form for WI
For 2020, since your employer has already withheld and submitted state income taxes to Wisconsin, you will need to file a Wisconsin Nonresident state income tax return.
When you prepare your Wisconsin nonresident income tax return, you will be able to get a refund for the income taxes withheld.
You will also need to file a resident income tax return for Michigan.
In the My Info section of TurboTax, confirm that you have entered the correct state information:
- Click Edit to the right of your name
- Confirm your input under #2 Tell us the state(s) you lived in
- Go back to the personal information section, and verify the mailing address and "Other state income" section. Be sure to answer yes to the question asking "Did you make money in any other states?".
This will ensure you are able to complete your nonresident income tax return for Wisconsin and your resident state income tax return for Michigan.
Make sure you complete your nonresident income tax return first to ensure both state returns are processed correctly.
Please be aware, since Michigan and Wisconsin have state reciprocity, you cannot claim a credit on your Michigan return for the income taxes withheld in Wisconsin. Wisconsin will refund the taxes when you file your nonresident return.
Michigan resident information for reciprocal state withholding taxes
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