My husband works as a contractor with his former employer. The staffing company through which he works, incorrectly listed his state of residence as MI rather than GA. For the past 2 1/2 years his state taxes were paid there. He never lived in Michigan and NEVER worked there. The staffing company says there is nothing they can do to fix this and that we need to do it. How can WE fix something that THEY did? I know we should have caught the error, but that is a moot point.

If your husband lived and worked in GA, he must pay GA taxes. File GA tax returns.

For MI file amended tax returns to get the refund. Attach statement from your employer that you lived and worked in GA. Read: Your U.S. Tax Return: Working or Living in Two or More states (http://taxipay.blogspot.com/2008/06/working-in-two-or-more-states.html)

MukatA has is right. You need to amend you Michigan returns to get a total refund of all taxes paid to Michigan, as Michigan has no legal standing to tax your income.

You should provide copies of your Georgia state tax returns when you file the amendments, because that provides Michigan proof that you are paying taxes on the income in your state of residence.