Question

Unemployment pay non resident filing in state of michigan

Forum|Forum|5 years ago
February 5, 2021
1 reply
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I have purchased the MICHIGAN State tax program because I am doing my son in law and daughters taxes. He lives and works in the state of INDIANA but his employer is MICHIGAN so they paid his COVID unemployment from state of michigan and no taxes were withheld. If we answer county worked in as no because he didn't actually work it moves the income on the michigan non resident form to the other box and shows no taxes due. Should we be marking the income earned in Michigan under the county the unemployment was paid from? If we do that it moves the income into the Michigan income column on the non resident schedule in turbo tax program.

TurboTax Home & Biz Windows

T

ThomasM125

The instructions to Michigan form MI-1040 states with regard to non-residents that you have to pay tax on "Salary, wages and other employee compensation for work performed in Michigan." So, since your son-in-law did not work in Michigan, one would think he is not required to file a tax return there to report his unemployment compensation, as it is associated with employee compensation.

However, it seems his income may have been reported as being earned in Michigan, as otherwise he wouldn't be able to receive unemployment benefits from there. So, you need to look at his W-2 forms to see if Michigan wages are reported in box 15 through 20. If so, then he should file the Michigan tax return, or get the W-2 corrected if possible.

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