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Returning Member
posted Mar 22, 2022 8:05:00 AM

Out of state filing - Michigan Employer and Texas Resident

Hello,

 

My employer is in Michigan and for the entire 2021, I was a Texas resident and worked remotely from Texas for the entire 2021. I did not travel to Michigan at all for 2021.

 

Now In Texas, there is no need to file, I get it.

 

For the Michigan filing, Do I need to show 100% (or the entire year)  wages? OR Do I need to declare earnings of 0 so I can get a full refund for the taxes my employer withheld? since neither I live nor worked in Michigan.

 

As per the below link, here instead of Texas, it's Vermont. From this answer, I need to file for Vermont, which is in my case, I need to only file for Texas but since Texas has no Income tax file so I do NOT need to file.

 

https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-file-a-nonresident-return-for-an-out-of-state-employer/00/26552

 

Thanks a log to the Turbo community

 

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3 Replies
Level 15
Mar 22, 2022 8:26:45 AM

Michigan does not tax non-resident remote income.

File a non-resident MI return on which you allocate zero income to Michigan, in order to obtain a refund of incorrectly withheld MI taxes.

Returning Member
Mar 22, 2022 9:15:17 AM

Thanks so much, Tom for your prompt reply.

 

Further, I found this from the Michigan website on the instructions on the Nonresident's income.


https://www.michigan.gov/-/media/Project/Websites/taxes/Forms/2020/2020-IIT-Forms/Schedule_NR.pdf?rev=87959a0706034ed293c80f2b9fbe6824

 

On the 2nd page 1st paragraph, It says "Nonresidents and part-year residents must pay income tax to Michigan on all income in Michigan or attributable to Michigan."

 

The above statement does not say anything about remote work etc, so little confused with "must".

 

So with my case, since it's completely remote work can I assume this is NOT appliable to me, could you please clarify once more?

 

Thanks again.

Expert Alumni
Mar 22, 2022 9:31:55 AM

Correct, that does not apply to you.

The general rule for state income tax is that you will be liable for state income tax based on where you are when you perform the work or when the income is earned.