I live in City A, and worked in City A and City B. I also married, and my spouse works and lives in City A. Does our combined income get taxed in both city A and city B?

[sirblooby18]

The cities are both in MI, and neither of them are Detroit. I was under the assumption that City B can only tax the income I made in City B, not City A and City B. I was also not aware that City B would tax the income from my spouse's City A, which is a much larger amount than my City B employer set aside for City B tax.

[MaryK4]

For 2020 the following Michigan cities levy an income tax of 1% on residents and 0.5% on nonresidents, with the exception of Detroit, Grand Rapids, Highland Park and Saginaw.  You wife should not pay for City B because she did not live or work there.  What cities impose an income tax?

Which is City B?  I can look up the specifics.

[sirblooby18]

Hi MaryK1101,
Thanks for responding. City A is Grand Rapids, and City B is Walker. I believe both impose income tax.

[MaryK4 · Accepted solution]

You will enter the Grand Rapids info as Residents.  When you get to the Walker Wages, you will have to do some adjustments: (See below)

You will have to edit each W2 so that only your Walker income is taxed.  You do this on the "Days Worked in Walker" page- enter 0s for your wife's Walker Days.  You will have to calculate the Walker wages to determine the Walker Days if your Walker income is included on one check (or if the city tax boxes on the W2 are filled out you will have this amount).  

@sirblooby18

[sirblooby18]

@MaryK4Awesome response, thank you so much!