CA and MI income calculator

[aays2]

Hello,

I started working for a company in CA starting 1st March, but I was living in MI till end of March and than moved to CA. Do I have pay the state tax in CA for the income earned in MI during the month of March while working for the company in CA? Can I use W-2 box 16 directly to calculate the MI and CA state income?

[ErnieS0]

No. That income belongs to Michigan. California does not tax remote employees. Include your March income on your MI return. 

You'll file part-year MI and CA returns so you can adjust your earnings. If the W-2 box 16 amounts are correct for each state, then you can use those amounts and not make any adjustments.

[aays2]

@ErnieS0 thanks. If the March last paycheck I have received in California even though I was working from Michigan. Do I have to include this amount on both MI and CA? Should I file the CA state first then MI or it doesn't matter?

[ErnieS0]

No. Your income is Michigan income until you moved to California so the paycheck you received while living in MI is MI income. 

You can file your returns in any order since you do not have any overlapping income and no credit for double taxed income. I find it easier to find returns in chronological order — MI and then CA, but it's your choice.

[aays2]

@ErnieS0 Thanks. My company has taxed me in both states for a week. Can I take the credit for doubled tax amount in CA return?

[BillM223]

"My company has taxed me in both states for a week."

To be precise, your company does not tax you. Your company may have done withholding in two states on income for the same week. You will report your income as Ernie outlined above, and then if Michigan taxes that income, California will give you a credit for any income that was double taxed.