Help! Out of state income is being taxed in both states

Forum|Forum|1 year ago
March 7, 2025
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Hello, my daughter goes to college out of state (south carolina). She works part time there. She also works part time at home (michigan) during the year. When I add her South CArolina income to the federal tax information, it automatically includes it in the Michigan state return. When i attempt to fill out a South Carolina state return on paper, it wants the information from the federal return which includes her Michigan income. Help, how do I handle this situation?

Not A Product Question

MayaD

She needs to file non-resident SC return and report the income earned in SC.

On her resident Michigan return, all her income from all sources is taxable. she can claim a credit for taxes paid to another state.

michigan.gov

How do I file a nonresident state return?

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knighthouse1Author

Thank you for the reply and information. Regarding the Michigan credit (line 18) i don't have the option of entering in that information anywhere during my data entry of the W2 information.

MindyB

That's correct, the credit for other states is not entered during W-2 input. Rather, when you are working on the particular state that gets the credit, Michigan, you will answer that you paid taxes to other states.

Navigate to State Taxes > Your State Returns > Michigan. In the Credits and taxes section, choose Other credits, then Other State Tax Credits. Answer the interview questions to take the credit.

You can read more about living and working in different states here: Multiple States—Figuring What's Owed When You Live and Work in More Than One State