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aodc4225-
New Member

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

 
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1 Best answer

Accepted Solutions
TomD8
Level 15

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Assuming your only MI-source income is your wife's W-2 wages:

When you do the MI non-resident return, enter zero as the MI income.  That will result in a full refund of the incorrectly withheld MI taxes.

Your wife should also file Form MI-W4 with her employer, indicating that she is exempt from MI withholding because she is a resident of Ohio, a reciprocal state.  Here's a link to the form:  https://www.michigan.gov/documents/taxes/MI-W4_370050_7.pdf

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

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11 Replies

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Were MI or OH taxes withheld on her W2?
aodc4225-
New Member

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Michigan was withheld and is listed on the w2
TomD8
Level 15

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Assuming your only MI-source income is your wife's W-2 wages:

When you do the MI non-resident return, enter zero as the MI income.  That will result in a full refund of the incorrectly withheld MI taxes.

Your wife should also file Form MI-W4 with her employer, indicating that she is exempt from MI withholding because she is a resident of Ohio, a reciprocal state.  Here's a link to the form:  https://www.michigan.gov/documents/taxes/MI-W4_370050_7.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
aodc4225-
New Member

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Thank you that makes sense and changed the refund amount.

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Because Michigan and Ohio have state tax reciprocity, you should be receiving a refund for the taxes paid to Michigan.

Make sure you are reporting your residency as you home in Ohio.

She may owe city taxes which are not covered by the reciprocity agreement, but she doesn't owe state taxes to MI.

You need to complete the Michigan Non-Resident Income Tax return before the Ohio Resident Income Tax return to ensure you receive credit for the taxes paid to the other state. 

For more information, follow this link:

https://www.michigan.gov/taxes/0,4676,7-238-75545_43715-154059--,00.html

aodc4225-
New Member

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Thank you that all makes sense but I don’t understand why TurboTax is stating we will only receive a refun from Michigan for a couple hundred dollars. I have our residency as Ohio and I don’t understand how the software is calculating this? Also there are no city taxes where she works.

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Compare her W2 to your entries. It is easy to miss a number. You should be receiving a refund for the full amount of withholding
aodc4225-
New Member

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

I just double checked all the numbers for federal and state forms and it was correct. Has the software already subtracted out what we owe Ohio?

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Yes, if you completed your Ohio resident tax return first. I advise to clear both state tax returns and restart in the order of MI, then OH. If this doesn't resolve your issue, I will report to our tech support.
aodc4225-
New Member

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

I completed Michigan first again just now and it gave me the same low number for my return. I then filled out Ohio and got the same amount due to them.

My wife works in Michigan but we live in Ohio and her tax return for Michigan is very low. We owe money to Ohio now and it seems we are paying taxes twice?

Was the amount of withholding significantly higher?
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