taxbrewster Posted March 3, 2009 Report Share Posted March 3, 2009 I have a client who is a res in MI (earned all income in MI). But received 4k in unemployment from MA. (i know the rules are weird, never worked in MA, but files a claim there) I can't for the life of me figure out the following... Should a NR return be filed for MA? I don't think so because it is under 8k for filling requirements. Therefore, it should not be excluded on of MI return correct? Then, it is just added to MI AGI, correct. I don't feel a PY/NR sch would be filed for the MI return. Thanks, it is one of those days, and have not done a MA return before and need a little help. Thanks in advance. Quote Link to comment Share on other sites More sharing options...
Maura Posted March 3, 2009 Report Share Posted March 3, 2009 The 8k is based on all income not just MA income. And MA does tax his unemployment as MA source income. Quote Link to comment Share on other sites More sharing options...
taxbrewster Posted March 3, 2009 Author Report Share Posted March 3, 2009 No, that is the thing. T/P family made 80k, the MA doesn't have a MA source of income. So I am assuming, I complete a MA PR/NR as well as a MI 1040...He would not qualify for a MI part year res because all he did was leave the state to file unemployment. Quote Link to comment Share on other sites More sharing options...
Maura Posted March 3, 2009 Report Share Posted March 3, 2009 He will need to file the MA form 1-NR return. And take a credit on the MI Quote Link to comment Share on other sites More sharing options...
taxbrewster Posted March 3, 2009 Author Report Share Posted March 3, 2009 Right, I would take the credit for tax paid (which there was none). Sooo, then question becomes is that income excludable for the state of MI. I am thinking no, because t/p was res of MI and not a part year, correct. Thanks again, for talking me through this. Quote Link to comment Share on other sites More sharing options...
Maura Posted March 3, 2009 Report Share Posted March 3, 2009 Based on your numbers I show he owes about $189. Did you enter his MI source income on line 14e? (bunny hop) Quote Link to comment Share on other sites More sharing options...
taxbrewster Posted March 3, 2009 Author Report Share Posted March 3, 2009 Well T/P is married and has 3 kids, so it changes the return a bit, but I got, and thank you very much for your help. Quote Link to comment Share on other sites More sharing options...
taxtrio Posted March 3, 2009 Report Share Posted March 3, 2009 Michigan full year resident cannot exclude income on the NR. Only part year residents can use that schedule. Michigan taxes ALL income of a resident unless specifically excludable by Michigan Law. i.e. pension, e bond interest and the like. If MA is taxing him on the unemployment income also then he can claim a tax credit for income tax paid to another state. Because the income is "double taxed" you can reduce the Michigan taxes by claiming a credit for the MA tax paid on the same income. (Must attach a copy of the MA return to the Michigan.) Taxtrio Michigan Quote Link to comment Share on other sites More sharing options...
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