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January 16, 2022
Question

Living in Pontiac MI but working in Detroit MI

  • January 16, 2022
  • 2 replies
  • 0 views

If you live in Pontiac, MI and work in Detroit, MI do you have to pay income tax to both cities and how much?

2 replies

January 17, 2022

You will pay 1.20% to Detroit and 1% to Pontiac.  If you lived and worked in Detroit, you would pay 2.4% to Detroit.

FM23Author
January 17, 2022

Thanks. Is this calculated from Adjusted Gross Income?

January 17, 2022

No,, the Detroit city tax return applies to compensation for work done in the city for nonresidents.  The Pontiac MI resident tax return does not use the Adjusted Gross Income.   @FM23

January 18, 2022

If you worked from home in 2021, check your Detroit wages. Make sure you are not being taxed for the days you worked outside Detroit. You can claim a refund if Detroit city tax was withheld on days when you did not work in Detroit.

 

To adjust your Detroit wages for days worked outside Detroit in TurboTax Online:

  1. Select State in the left column
  2. Continue with Michigan
  3. Keep going to the screen A few things before we wrap up your state taxes
  4. START Michigan City Tax Returns
  5. Make sure Detroit is checked on the screen Live or Work in Any of These Cities?
  6. On Detroit Wages, click EDIT next to your company
  7. On Detroit Wage Adjustment, select Working Days Allocation under Adjustment Type
  8. Fill in the information in Allocation of Detroit Wages