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Level 1
posted Apr 10, 2024 1:10:48 PM

Reportable wages to Michigan when working remotely from Tennessee

I currently live in Tennessee which has no income tax.  I have a part-time job in Michigan that I work tele-remotely.  For the entirety of 2023, I was a Tennessee resident and never set foot in Michigan; however, I noticed on my W-2 that I was paying income tax for the state of Michigan.  I contacted my workplace and they said they couldn't return the taxes withheld because they were already sent to the state.

 

Do I file an income tax return as a non-resident for Michigan and list the amount of income reportable to Michigan as $0 since I didn't earn a salary or wage while physically in Michigan.  The item below isn't very clear. Emphasis mine. 


Residents of All Other States

If you are filing as a resident of any other state and as a part-year or nonresident of Michigan, use the following guideline for determining the income attributable to Michigan:

Part-year residents enter salaries and wages received for the period you were a Michigan resident plus any wages earned in Michigan after your residency changed.


Nonresidents enter salaries and wages earned in Michigan.



NOTE: Taxes paid to local governments in Reciprocal states are eligible.

 

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1 Best answer
Expert Alumni
Apr 10, 2024 1:26:34 PM

Yes.  File a nonresident MI return and allocate zero (0) wages to MI in the "Income/Adjustments" section and the taxes withheld will be refunded. If you haven't already, be sure to have your employer stop the withholding for MI taxes going forward.

 

In the My Info section scroll down to "Other State Income" and answer "Yes" you earned income in another state and select MI from the dropdown list.  This will generate the MI return. 

 

1 Replies
Expert Alumni
Apr 10, 2024 1:26:34 PM

Yes.  File a nonresident MI return and allocate zero (0) wages to MI in the "Income/Adjustments" section and the taxes withheld will be refunded. If you haven't already, be sure to have your employer stop the withholding for MI taxes going forward.

 

In the My Info section scroll down to "Other State Income" and answer "Yes" you earned income in another state and select MI from the dropdown list.  This will generate the MI return.