OH/MI reciprocity time resident

Forum|Forum|2 years ago
March 18, 2024
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I lived in a non reciprocal state from Jan - Oct 2023. I moved to MI in November 2023 and got a job in Toledo, OH. My new employer took out taxes for MI, OH and Toledo. Do I qualify for reciprocity for income earned in OH since I only lived in MI, (and worked in OH) for 2 months in 2023? When preparing the OH income taxes, I experimented with reporting the earned income and then reporting zero income, hoping to get a refund for the reciprocal taxes paid. In both cases, I owed taxes to OH, probably due to the non reciprocal state income. Do I actually owe OH taxes? Can I report the OH income for both MI and OH since income taxes were paid in both states? Do I have to file income taxes in Toledo?

Hal_Al

Employee

Q. Do I qualify for reciprocity for income earned in OH since I only lived in MI, (and worked in OH) for 2 months in 2023?

A. No. The reciprocal agreement only applies to full year residents of a reciprocal state.

Q. Do I have to file income taxes in Toledo?

A. No, but maybe. As a non-resident, you are not required to file an Ohio city return, unless there was an error in the withholding amount (unlikely). But, Michigan will give you credit, on the MI state return for OH city tax withheld, but you have to attach a copy of the city return. So, even though the Ohio city does not require you to file a return, you have to file one if you want the MI credit, even though there will be no tax due or refunded from the Ohio city.

Q. Do I actually owe OH taxes?

A. Yes, because you had Ohio source income and the reciprocal agreement doe not apply. You file an OH non resident return. Be sure not to claim reciprocity at the reciprocal state question in TT.

Q. Can I report the OH income for both MI and OH since income taxes were paid in both states?

A. Yes. MI will give you a credit for the state tax paid to OH (and maybe the Toledo tax, as described above).