I work in Michigan,live inOhio and pay Ohio taxes. Do I need to file Michigan state tax form?

[KrisD · Accepted solution]

No, if your employer properly withheld taxes for your resident state, since Michigan and Ohio have a reciprocal agreement, you would not need to file an Michigan state tax return regarding your W2 income. 

[cheryldykstra]

That may be true, but I am in the same situation (Ohio resident, working in Michigan while going to college in Michigan), and intuit turbotax online still has me paying Michigan state tax to Michigan (while also filing an Ohio state tax return).  I don't know what to do.  

[ABC567]

Hello, 

I have an even more complicated situation. 

My spouse and I used to live in Ohio together. He did not have any income in Ohio (unemployed), while I worked. He got a job with a multinational firm and moved to Florida to work out of an office there for a client, while I remained in Ohio. He has lived in Florida full time since taking the job minus training in other states, etc. 

His company did not update his address and continued to charge Ohio taxes. We informed the company, and they updated the address to Florida eventually. Until then, however, he paid Ohio taxes. The W2 form showed Ohio and the amount of state taxes that had already been paid in box 15.

We are doing Married Filing Jointly federally, and Ohio requires that that its state return status be the same as the federal return status of married filing jointly.

I have tried the usual solutions:  1)I have included partial year resident data in TurboTax already for my spouse, and this has not changed the amount that is "counted" as an Ohio State taxable wage for our combine income.  2) There is an Ohio state tax section that allows double-taxed income to be "credited," but it was never double-taxed. Florida has no state income, and so there is no credit to be given. 3) I cannot get the company to do a wage reassignment and get them money back from Ohio and issue a W2C, and their company through ADP recommended getting a tax attorney (which would exceed the amount of money that was charged by Ohio). 

Thank you in advance for any and all help!

[foxyjoe]

Similar situation, Ohio resident working in MI, but Michigan employer DID withhold for MI income tax.  Now, what are ALL the forms that must be filed to get a refund from MI for tax withholdings? 

[JotikaT2]

You will need to file a nonresident income tax return for Michigan to claim a refund of the Michigan tax withheld.

Please see the link below for more details on the forms required to be filed as it will differ based upon your particular tax situation. For your particular set of circumstances, look at the bottom of page 1 on the link.

Michigan filing requirements

You will also need to contact your employer to submit an Employee's Michigan Withholding Exemption Certificate as shown in the link below.

Michigan withholding exemption form

Since Michigan and Ohio have state reciprocity, you should only have income taxes withheld in your resident state of Ohio.  

What is a state reciprocal agreement

[foxyjoe]

Thanks for your quick reply...

OK, did all that, but it still shows MI tax due on form MI1040.  As a non-resident in a reciprocal state, I should have 0 tax due.  What am I missing?

[JotikaT2]

I recommend reviewing your personal information as well then to ensure it is entered correctly.

In the My Info section of TurboTax, confirm that you have entered the correct state information: 

1. Click Edit to the right of your name 
2. Confirm your input under #2 Tell us the state(s) you lived in
3. Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer yes to the question asking "Did you make money in any other states?" and select Michigan here.

Also, review your input on the Michigan interview section.  As you go through the screens, you should see a screen titled Michigan Wages.  Be sure to enter zero here as being applicable to Michigan since you are located in a state with reciprocity.

This will prepare the return for Michigan so you receive a refund for all of your withholdings that should not have been withheld in Michigan.

[foxyjoe]

I found the answer... MI income is reported as '0' on form MI Schedule NR.

Thanks...