Do I qualify for a Detroit nonresident tax allocation?
by TurboTax• Updated 6 months ago
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:
- Sign in to TurboTax and open your state return.
- Answer the questions until you get to the Which Cities Did You Live or Work In? screen.
- Select I need a Detroit City return and I file as a Detroit Nonresident, then Continue.
- On the Live or Work in Any of These Cities? screen, select Detroit and any other city that applies to you.
- On the Your Detroit Return screen, select I file as a Detroit Nonresident, then Continue.
- On the Detroit Wages screen, select Edit next to your affected wages.
- On the Detroit Wage Adjustment screen, select Working Days Allocation as the Adjustment Type.
- 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.
- Select Continue then Done.
More like this
- Do I qualify for Head of Household in 2023?by TurboTax•12904•Updated 1 week ago
- Can I claim the AMT (Alternative Minimum Tax) credit?by TurboTax•1290•Updated 1 month ago
- Why would I have to file a nonresident state return?by TurboTax•8690•Updated April 03, 2024
- Is my distribution nontaxable if Box 2a on my 1099-R is 0 or blank?by TurboTax•3300•Updated 1 month ago
- Which city tax returns can I do in the TurboTax state program?by TurboTax•1975•Updated 4 weeks ago
![Dynamic Ads](https://digitalasset.intuit.com/render/content/dam/intuit/cgcs/en_us/turbotax/images/TY23_Default_MAX_Refund_Dynamic_Ad_318x300.jpg)
![Dynamic Ads](https://digitalasset.intuit.com/render/content/dam/intuit/cgcs/en_us/turbotax/images/TY23_Default_MAX_Refund_Dynamic_Ad_300x50.jpg)