So I have a very weird situation. I got transferred from Texas to Michigan for my company, but started working and getting paid by Michigan payroll two months before I could move there while working remotely. So as of such I was paying Michigan state/local income taxes on my payroll (work wasn't set up to do anything else) while I was a non-resident. This is especially annoying because Texas has no state/local income tax.
I ended the year a resident in Michigan.
Can I file both a non-resident and a resident state return in the same state for different periods of time? If not, how do I reclaim this mis-taxed income?
Thanks!
Instead of a resident/non-resident return for Michigan, you would file a part-year resident return for Michigan. Then, you can allocate the income between the period of time you were a resident of Michigan and the time you were a resident of Texas.
Instead of a resident/non-resident return for Michigan, you would file a part-year resident return for Michigan. Then, you can allocate the income between the period of time you were a resident of Michigan and the time you were a resident of Texas.
"The income you earned in MI, while still a resident of TX, is also taxable by MI (and the local MI city). "
Not if the work was done remotely from Texas. Michigan does not tax non-resident remote workers.