TurboTax HelpTurboTax HelpIntuit

Do I qualify for a Detroit nonresident tax allocation? 

SOLVEDby TurboTax176Updated January 11, 2024

If you worked remotely for a Detroit-based company, you may qualify for a city tax break. You must also:

  • live in Detroit part of year,
  • come in to Detroit to work, or
  • be considered a nonresident of Detroit

Residents of Detroit will still be taxed on all income, even if they’re working from home and telecommuting for a company outside the city limits.

If a nonresident Detroit employee has a W-2 that shows city-based income tax withheld for periods when working remotely, the city permits those employees to exclude time spent working as a nonresident.

How do I exclude nonresident time in TurboTax?

TurboTax provides an option that allows you to divide days spent working in Detroit from days working outside the city. 

Here’s how it’s done: 

  1. Sign in to TurboTax and open your state return.
  2. Answer the questions until you get to the Which Cities Did You Live or Work In? screen.
  3. Select I need a Detroit City return and I file as a Detroit Nonresident, then Continue.
  4. On the Live or Work in Any of These Cities? screen, select Detroit and any other city that applies to you.
  5. On the Your Detroit Return screen, select I file as a Detroit Nonresident, then Continue.
  6. On the Detroit Wages screen, select Edit next to your affected wages.
  7. On the Detroit Wage Adjustment screen, select Working Days Allocation as the Adjustment Type.
  8. On the Allocation of Detroit Wages screen, you can calculate your income taxable to Detroit based upon your days worked in Detroit versus total days worked.
  9. Select Continue then Done.

Was this helpful?

You must sign in to vote, reply, or post
Dynamic AdsDynamic Ads