Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: techwriter1972 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120807  
Subject: non-resident taxes question Date: 12/2/2002 12:18 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I work in Michigan, but my home state, insurance, car, etc is all based in Indiana. I have a house there, and do expect to work in MI for several years at all. I have heard that I should get back all of the MI income taxes that I have paid this year through my employer.

Was I told right, or do I need to figure out a way to get my federal taxes back before I submit my Indiana tax return?

Confused,
Heather
Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 62322 of 120807
Subject: Re: non-resident taxes question Date: 12/2/2002 1:13 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I work in Michigan, but my home state, insurance, car, etc is all based in Indiana.

I'm a little unclear here. Where do you live?

I have heard that I should get back all of the MI income taxes that I have paid this year through my employer.

It depends on what agreements Michigan and Indiana have. You'll be paying income tax in one of those states, and possibly both. But the total state tax you pay should be the higher of the two state taxes. One will likely give you credit for the taxes paid to the other.

Typically, your home state will tax all of your income and give you credit for the out of state taxes you pay. But there are a few pairs of states where that is reversed.

--Peter

Print the post Back To Top
Author: techwriter1972 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 62326 of 120807
Subject: Re: non-resident taxes question Date: 12/2/2002 1:49 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I work in Michigan at Pharmacia in Kalamazoo on contract for however long I want to be here. I have part of my income as tax-free for the per diem, so I don't have to travel every weekend.

All of my legal documents, health insurance, car registration, etc. are tied to Indiana.

Anyways, I have no idea where to find out what types of agreements Indiana has with Michigan. Where do you think I should be able to find that at? I've looked at MI's treasury website, and also IN's website, and haven't found a thing.

Thanks!
Heather



Print the post Back To Top
Author: medgoddess Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 62327 of 120807
Subject: Re: non-resident taxes question Date: 12/2/2002 2:35 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Michigan has agreements with OH, IN, IL, KY, and WI. And probably Canada too, but I don't know that for sure.

Look under Google for State of Michigan Treasury...last year's forms/instructions included info on nonresidents' taxes, IIRC. Sorry, I don't know the site offhand. But I remember seeing the website in the instructions.
Kristi

Print the post Back To Top
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 62328 of 120807
Subject: Re: non-resident taxes question Date: 12/2/2002 2:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I have no idea where to find out what types of agreements Indiana has with Michigan. Where do you think I should be able to find that at?

In the instructions for either state's income tax return, probably in or near the "Who Must File?" section.

Phil

Print the post Back To Top
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 62333 of 120807
Subject: Re: non-resident taxes question Date: 12/2/2002 2:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have part of my income as tax-free for the per diem, so I don't have to travel every weekend.

That only works if the assignment is temporary - defined as less than a year. You mentioned 2 or 3 years, so it sounds like you might not be on a temporary out of town assignment. That would move your tax home to the new state - Michigan. And it would make any payments for living expenses taxable.

All of my legal documents, health insurance, car registration, etc. are tied to Indiana.

This is likely immaterial, and is far less important than where you live. Since you're avoiding the question, I suspect you're living in Michigan and possibly travelling back to Indiana occasionally. This would tend to make you a Michigan resident.

Anyways, I have no idea where to find out what types of agreements Indiana has with Michigan. Where do you think I should be able to find that at? I've looked at MI's treasury website, and also IN's website, and haven't found a thing.

The buzzwords you need to look for are non-resident and part-year resident. The instructions for their basic income tax form will very likely either address these issues or direct you to the correct form and instructions.

--Peter

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement