If you had incorrectly paid taxes to the wrong state, how can this be fixed?
Upon starting a new job, the employer assumed I had an address that was in Michigan. I didn't realize this mistake for quite some time, and when I did I changed it to be Wisconsin. Now, I find my W2 (of course) shows both states having collected income taxes. I do not want to be penalized for having this incorrect state on my taxes as I never even have lived there, yet if I was to do a "non-resident" form, I will be hit hard with taxes from Michigan. What do I have to do to reclaim the collected taxes from Michigan without doing a tax form that will make me pay as a Michigan resident? My employer has been less than wonderful to deal with as it is a large company and I have since been laid off.
Public Comments
- You say you never lived in Michigan. If you worked in Michigan, or earned income in Michigan, then you can be assessed income tax in that state. If you never lived in Michigan, nor ever worked in Michigan, then your employer has a responsibility to correct your W-2. If you cannot get a corrected W-2 from your employer, then file your return the right way (with no Michigan source income) and include a note that your W-2 is incorrect and your employer won't correct it. The State will investigate this with your employer and make a determination. If you in fact do have Michigan source income, you will get a letter and a bill which includes interest and possible penalties on your balance due. When you file a Michigan non-resident return, you are allowed to subtract income attributable to another state. Complete MI 1040. Complete schedule NR, do not include any income in column B. On line 16, Michigan source income, enter 0. Then complete schedule 1. On line 11, subtract the income that is not apportioned to Michigan (does not have a Michigan source).
