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Yes this can be done. TurboTax will file Form 5119, City of Detroit NonResident Income Tax Return with Form 5121 City of Detroit Withholding Tax Schedule including Part 3, wage allocation for nonresidents.
See the link for more details, see page 7: 2019 City of Detroit Income Tax Book.
See page 8 of the instructions, column one: Form 5121 instructions begin on page 14. Form 5121 is on page 26.
To do this in TurboTax, first, verify the W-2 that had Detroit earnings is entered exactly as you received it.
When your federal interview is complete, begin the Michigan interview.
In TurboTax Online, you will only be able to allocate as indicated on the W-2. Early on in the Michigan interview, you will be asked if you need a Detroit return. Check the boxes as indicated in the screenshot below: That the taxpayer needs a Detroit City Return and is filing as a Detroit Nonresident.
For your situation, I do recommend TurboTax CD/Download. It is easier to see the income allocation screens in TurboTax CD/Download.
Click the link for How do I switch from TurboTax Online to the TurboTax software?
Early in the city interview, the allocation of Detroit wages will be identified.
From the Forms, go to the Open forms.
Type 5121 to get to the Allocation page. Be sure to select N in part 1, income subject to 5121 allocation.
Then, still at Open Forms, 5119. Verify Form 5119 captured the allocation carried from Form 5121.
My work stated that we MUST attach a form to our City of Detroit return. It is a "City Schedule W Attachment
CITY OF DETROIT INCOME TAX, 2020 Form 5121 Part 3 ā Wage Allocation for Non-Residents" form but Turbo tax does not have any place to upload this form during the process. I completed my filing and electronically submitted and the Turbo Tax print out said "Treasury may request a copy of work log and letter from my employer". Does anyone know if the city will reject my filing now because Turbo tax does not allow an upload of the my letter from my employer (which I do have to show I only worked X number of days in the city)?
They will most likely not reject it but request a copy from you.
5121, City of Detroit Withholding Tax Schedule 2020
www.michigan.gov āŗ documents āŗ taxes āŗ 5121_712033_7
If both filer and spouse have income subject to allocation, figure them separately. Include only wages allocated to Detroit in column H below on Form 5119, line 9 or Form 5120, line 10, column B. If you need additional space, include a City of Detroit Withholding Tax Continuation Schedule (Form 5253
I need to purchase software in order to do this?
The Detroit city return is included in TurboTax with the Michigan state program. Detroit city returns can be electronically filed along with the Michigan return.
I am having issues with the wage allocation for Detroit. Both my spouse and I are non-residents who worked in the City of Detroit and have different allocations. When I enter my information the software fills the same information for my spouse. If we try to change his allocation, it changes it for both Forms W-2. Is there a way to enter different wage allocations for each Form W-2 on the Form 5121? We tried entering the information using the form view instead of the step by step, but it did not change the electronic filing information on page 3 of the Form 5121. We were not able to make any edits to this section of the form.
@GTS111 There is a way to do two separate Detroit allocations in Forms Mode. This will create to married separate Detroit returns:
After you print your wife's return you may want to undo this. TurboTax says you have to mail the second return. I have not tested whether you can e-file this way as we can't get dummy returns to the IRS or MI.
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