Graduate student in Kentucky as a Michigan resident

[Anonymous]

Hi! I will be a graduate student earning an assistantship in Kentucky. I was told by my university to withhold taxes in Kentucky, but I want to keep my Michigan residency. Is this possible? I know that they are reciprocal states but only if I work less than 183 days in Kentucky. How should I file? Am I able to remain a Michigan resident and file taxes in Kentucky. Would I submit a nonresident tax form in Michigan or a resident one or are no tax forms needed?

Any help is appreciated!

[MarilynG1]

Yes, if your university will deduct Michigan tax for you, that will be helpful in filing a Michigan Resident return later. 

If they cannot and deduct Kentucky taxes instead, you will file a Non-Resident return to KY, but Michigan will give you credit for tax you paid to Kentucky so you are not double-taxed.

@Anonymous 

[Anonymous]

Spoiler
Thank you but the problem is Michigan only allows a tax credit to non-reciprocal states (Kentucky is a reciprocal one so I can't claim the tax credit), meanwhile Kentucky doesn't consider me a non-resident because on the form it says I must have lived less than 183 days in Kentucky in order to be able to file the non-resident return.

[AmyC]

If you a dependent, you live where your parents live.  A dependent at college is considered to live at home even though they could be far way. If you are not a dependent,  your home is where you vote, pay taxes, register your car, etc.

As a dependent of MI parents, you are a KY nonresident. If you are not a dependent, where you call home and intend to be is home.

The 183 day clause is for people who actually live in KY rather than being in KY to attend school. See If i am a college student, am i a resident of the state that my school is in? 

However, if you have in-state tuition and are a KY resident, you should file a KY resident return.