[khadka]

High all,

I am part resident of Michigan (4 months of 2008). My emplyer is in Wisconsin and paid taxes in WI since it registered in WI. It does not look like my employer pays any tax to MI.

I think, I should file MI state (part) and other part in Illinois because the remainder part I lived in Illinois. Where do I need to input the state income withheld from my W-2 from WI employer?

Any cluse??

Thanks

[ebaines]

I assume that you work in MI as well as live in MI - is that right? In other words, you don't commute to work in WI, correct? In this case you need to file a part-year resident tax return for MI, and you pay taxes to MI based on the income you earned while living there. You do the same with IL. As for WI - you do not owe them any taxes because you neither lived nor worked there at any time. But because your employer withhled taxes for WI, you are going to have to file a non-resident return and get a full refund from them. So to answer your question - you input the WI withholding on the WI tax return.

Unfortunately you will probably find that you owe MI a lot of money, since tax was not withheld for them. There is no way to simply "credit" the money withheld for WI to what you owe MI. Obviously going forward you need to get your employer to stop withholding for WI and to start withholding for MI. If they can't (or won't) do this, you must start filing quarterly estimated tax payments with MI, or come next year you may get socked with a penalty for underpayment of taxes throughout the year.

From the FAQ on the MI tax web site - - I am a Michigan resident but work in another state. Can I subtract my wages earned in the other state?
Note that it addresss the issue of taxes withheld for WI (which is a reciprocal state for MI):

I am a Michigan resident but work in another state. Can I subtract my wages earned in the other state?

Answer:
If you are a Michigan resident, all your income is subject to tax, no matter where it is earned, except income earned from out-of-state business activity. A Michigan resident whose income is subject to Michigan tax and the tax of another state may qualify for a non-refundable tax credit on the Michigan income tax return. The non-refundable credit for taxes paid to another state isn't available for a Michigan resident who earns salaries and wages in a state that has a reciprocal agreement with Michigan. The reciprocal agreements exempt nonresidents from income taxes imposed by each state on salaries, wages and other employee compensation. The following states are reciprocal with Michigan: Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin. If a Michigan resident erroneously had income tax withheld for a reciprocal state on salaries and wages earned there, it is the Michigan resident's responsibility to file a nonresident tax return with that state to get a refund of the tax withheld in error.