"Other State Income Taxed by Indiana"

Forum|Forum|1 year ago
February 23, 2025
2 replies
0 views

Hello,

I am a "Resident" of Indiana and "Non-resident" of Michigan. I am working on Indiana's tax credit for out of state work. Among the questions for this credit as "Other State (in my case Michigan) Income taxed by Indiana". Can anyone tell me where to find this number? I do not see it on my Michigan tax return, or I am not looking at the right place.

Best answer by KeshaH

Indiana and Michigan are reciprocal states, so you will need to adjust your Michigan return to show zero income. If you had any Michigan tax withheld, you should get a refund of all of it.

You would not qualify for the other state tax credit, because Michigan is not taxing the income you earned while an Indiana resident. If you didn't have any tax withheld for Indiana, you will have a balance due on your return.

Hal_Al

Employee

The credit for "Other State Income taxed by Indiana", does not apply in your case.

Indiana and Michigan are reciprocal states.

No MI taxes are withheld or due and you do not normally need to file a return for MI. But IN will tax you on your MI income.

If MI taxes are mistakenly withheld, you then have to file a MI non resident return to get a refund. IN will not give you a credit. You should ask your employer to stop withholding so you don't have to file a MI return every year.

KeshaHAnswer

Indiana and Michigan are reciprocal states, so you will need to adjust your Michigan return to show zero income. If you had any Michigan tax withheld, you should get a refund of all of it.

kecaseyAuthor

Thank you so much for the help!

Two questions:

1. If I have already filed my Michigan taxes and have been taxed in a way that does not reflect Michigan being a reciprocal state with Indiana, how do I remedy this or file an amended tax return?

2. If I also made income in Missouri, which is not a reciprocal state with Indiana, where would I find the "Other State Income Taxed by Indiana" for my MO income?

Thank you!

KeshaH

You'll need to amend your Michigan tax return to change your income. You can follow these steps to amend your Michigan return.

For Missouri, you will need to complete that return first. Then, that information should transfer to your Indiana return. If all of the income you earned in Missouri was earned while you were a resident of Indiana, then that would be the amount of income that is taxed in both states.