If you are a Detroit resident, all of your income is subject to Detroit tax, no matter where it is earned. If you are a nonresident, you are not subject to tax on wages earned while telecommuting from a location outside the city. However, any wages earned by a nonresident while working within the City of Detroit are taxable.
Resident:
• File a return if you owe tax, are due a refund, or your AGI exceeds your exemption allowance.
• If you file a federal return, you should file a City return even if you do not owe City tax. This will eliminate unnecessary correspondence from Treasury.
• If your AGI is less than your personal exemption allowance and City income tax was withheld from your earnings, you must file a return to claim a refund of the tax withheld.
Nonresident/Part-Year:
• File a return if you owe tax, are due a refund, or your wages exceed your exemption allowance.
• If your wages are less than your personal exemption allowance and City income tax was withheld from your earnings, you must file a return to claim a refund of the tax withheld.
Determine your residency status.