Basically, I'm a full time web developer --that works from home-- in Florida for a small company in Michigan... and they deduct MI state tax from my pay.
I need to know the following before i approach them about this:
1. Are they suppose to be applying Michigan state income tax to my paychecks, when i live and work in Florida (no state income tax)?
and... 2. How would i go about getting a refund for the 1 year of MI state income tax they deducted from my pay?
Thanks
-ales
2007-02-12 18:27:58 · 5 answers · asked by Ales M 1 in Business & Finance ➔ Taxes ➔ United States
here is my employer's answer (please provide any thoughts on this) :
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The state tax is default for Michigan however, our CPA firm has been filing your employment as a non-Michigan resident working for a Michigan company.
The State of Michigan does not recognize a non-payment of state tax of
employment unless our business has offices in states for where we are
licensed to do business.
The taxes are owed regardless - the issue which has not been confirmed is
Florida and if we will owe for an independent contractor tax which would
actually be additional tax payment up and beyond the tax already paid.
We have met extensively this year regarding how we are going to handle your
employment status. Up to this point there was not a concern - but the laws
have changed in Michigan as well for non-resident employment and the tax
increase as well as considering employment of this kind independent
contractor out of state.
State tax is due no matter where you are
2007-02-13 03:28:21 · update #1
You neither live nor work in MI so you do not owe any MI state income tax. You should have brought this to their attention with the first paycheck instead of waiting all year.
You can ask them to return those withholdings to you although it may be difficult for them to get this back from MI at this point.
Alternatively you can file a MI tax return listing zero income and the taxes withheld. Include a note explaining that your employer erroneously withheld MI income taxes and that the only reason you are filing is to claim a refund of those taxes withheld. This will probably be the fastest way to resolve this issue.
2007-02-12 23:42:39 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Since you live AND work in Florida, your wages is only taxable in Florida (which means it is not taxable for state purposes since Florida doesn't have an income tax). If they withheld Michigan state income tax from your pay, you will need to file a Michigan nonresident tax return in order to claim zero Michigan source income and get a refund of the taxes they withheld.
2007-02-13 02:35:12 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Since you live and work in FL, you do not need to pay taxes to Michigan. They never should have withheld MI taxes. You will need to file a non-resident return for MI to get all that money back.
2007-02-13 09:12:42 · answer #3 · answered by LC 2 · 0⤊ 0⤋
Yes, you're required by both Florida and Michigan state to file as:
" Part time resident ". You may be able to claim tax credit against MI if you owned a property in Florida. 1 ) If you're working for a same company in Florida but transfer to Michigan on a temporary assignment then your employer responsible for adding both Florida and Michigan state on your " separate state W-2 " 2)
File as: Part-time resident and a length of time you resided there.
2007-02-13 05:08:12 · answer #4 · answered by MINH H 3 · 0⤊ 3⤋
You don't live in Michigan, therefore you shouldn't have to pay taxes there. Point blank.
2007-02-13 02:32:31 · answer #5 · answered by Mt ~^^~~^^~ 5 · 2⤊ 1⤋