Can Michigan tax money I made in Texas?

I'm a MI resident but worked in Texas for 6 months paid out by a company established in Texas (Texas has no state income tax). Can MI tax that money?

Public Comments

1. You still owe it if you live in Michigan. If the company didn't take it out, then you're obligated to pay it yourself.
2. As a Michigan resident you are taxed on all of the income earned while you are a resident. So the income you earned in Texas would be taxed on your MI return. Sue from H&R Block This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more.
3. Yes. The state where it was earned gets the first crack at it, but so can your residence state. The residence state then generally gives you a credit for any tax paid to the state where the income was earned. Since Texas doesn't tax it, your credit on the Michigan return is zero. Therefore, you effectively are ending up paying tax to Michigan on the entire amount.