I live in Michigan and I worked in Florida for 4.5 months. Florida does not have a state tax. How do I do my Michigan taxes so I will only be taxed on the income earned in Michigan? In Michigan, I will put my federal AGI (xy) on my Michigan, and only "x" should be taxed. What forms do I use?
2007-01-28 14:02:49 · 4 answers · asked by Alex P 1 in Business & Finance ➔ Taxes ➔ United States
Your W-2 should reflect the correct breakout.
2007-01-28 14:19:28 · answer #1 · answered by uofmigrad 1 · 0⤊ 0⤋
It's a scam.
When you work in one state, live in the other, you get to pay the higher of the 2 tax rates. If Florida had a 2% income tax, and Michigan has a 6% income tax, Florida would collect 2%, Michigan would let you deduct Florida's 2%, and only charge you 4%. If it was the other way, Florida would get 6%, and Michigan nothing.
2007-01-29 08:26:56 · answer #2 · answered by Quixotic 3 · 0⤊ 0⤋
Your state of domicile (MI) has the right to tax you on all of your income regardless of which state you earned it in. If FL had an income tax, MI would allow you a credit for the taxes paid to FL; but as FL doesn't have an income tax there's no credit available to you.
2007-01-28 14:34:23 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Either go to a professional or buy good software (such as Turbo Tax) to do this. Don't rely on unprofessional opinions on tax matters. You will regret it when you get a big bill 10 years from now if you do it wrong.
2007-01-30 08:42:44 · answer #4 · answered by peppergrover 2 · 0⤊ 0⤋