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How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

Do I have to file taxes with the city of Toledo and would I add the taxes taken out to my state tax credit in Turbo tax?
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Level 15

How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

Michigan will give you credit for that on the state return, but you have to attach a copy of the city return. So, even though the Ohio city (Toledo) does not require you to file a return, you have to file one to get the MI credit, even though there will be no tax due or refunded from the Ohio city.  

So, yes.  You have to file taxes with the city of Toledo, if you want to claim the credit on your MI return. Otherwise, you do not need to file a Toledo return.

Yes, you would  add the taxes taken out, by Toledo, as a MI state tax credit,  in Turbo tax

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Level 15

How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

Michigan will give you credit for that on the state return, but you have to attach a copy of the city return. So, even though the Ohio city (Toledo) does not require you to file a return, you have to file one to get the MI credit, even though there will be no tax due or refunded from the Ohio city.  

So, yes.  You have to file taxes with the city of Toledo, if you want to claim the credit on your MI return. Otherwise, you do not need to file a Toledo return.

Yes, you would  add the taxes taken out, by Toledo, as a MI state tax credit,  in Turbo tax

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How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

Please let me know if I understand correctly.  Example:  Michigan resident working in Toledo pays $2000 on W-4 to the City of Toledo.  Amount of MI taxes owed is $3600.   I write $2000 in Box 18a and subtract that from Line 17  ($3600 - $2000 = $1600)  So the amount of taxes I owe Michigan is $1600?  And I write that in Box 20?   

 

Thank you so very much for helping me wrap my head around this.  Using actual numbers to plug in the equation somehow helps my poor, over-wrought brain to understand.  Your time and expertise are much appreciated. 

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Level 15

How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

@simplemom3 

Yes, that is basically correct.  

But the credit cannot be more than the tax MI calculates on the Toledo income.  TurboTax calculates the credit for you and puts the amount on line 18b*.  Line 18b is usually the same as line 18a, when an OH city tax is involved. 

 

But, technically, it's line 17 minus line 18b (not 18a) that gets written in box 20 (assuming line 19b is blank).

 

* If you're doing the form manually, see the form MI-1040 instructions for line 19b (page 11). 

 https://www.michigan.gov/documents/taxes/BOOK_MI_1040_674612_7.pdf

 

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How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

"But the credit cannot be more than the MI tax calculates on the Toledo income,"   This is the part I don't understand.  And the example shown in the booklet shows different amounts of income being earned in different states.  In my case 100% of income is earned in Toledo OH (but I live in MI).  So because of the reciprocal agreement  I don't pay any (payroll) state tax to OH, I pay it to MI.  But I pay (payroll) City of Toledo 2.25% tax from my wages and this amount is listed on the W-2.  

 

In a nutshell, the Mi tax rate is 4.25%.  So if line 17 equals $3650 and line 18 equals $2000, line 18a and 18b would also be $2000.  $3650 - $2000 = $1650.  So the MI tax owed would be $1650?  

 

Thank you again for your replies and assistance.  

 

 

 

 

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Level 15

How do I receive a refund for the Toledo, Ohio city taxes I paid as a non-resident in my Michigan refund?

Q. So the MI tax owed would be $1650?  

A. Yes.  In your case (and most of the time) lines18a and 18b are the same. 

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