"Impreza Buyer" <e_gluk[at]yahoo.com> wrote:

- quote -

Sir/Madam:

Michigan wants their share. You have/will be changing your
tax home to Michigan for IRS purposes. Watch the "commute"
to CA on weekends. Not a deductible expense because of the
change in tax home. "Tax Home" is an issue determined by
facts and circumstances. I am assuming that you are working
in MI and not simply working for a company located out of MI
and traveling the length and breath of the Country.

--
Regards,

Mark X Rigotti, CPA MI

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e_gluk[at]yahoo.com (Impreza Buyer) wrote:

- quote -

You will file in both states and pay to California for
income earned in California for this year. The tax tables
used will calculate tax on worldwide income. You will also
file a Calidfornia "Schedule S"-credit for tax paid to
another state(it NEVER is dollar for dollar, but is a credit
so that you aren't paying full tax to both states). Remember
some cities in Michigan also have a city tax in addtion to
state tax. That won't be a credit on the California form.

Cindy (born in Detroit, living in San Diego)

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e_gluk[at]yahoo.com (Impreza Buyer) wrote:

- quote -

Your income from the job in MI is MI income, and MI taxes
you on that much only, because you're a non-resident. You're
a CA resident, so you owe CA taxes even on MI income, but
you get a credit for taxes paid to MI.

MI has a 4.1% flat tax after personal exemptions, but
because you're a nonresident, your exemption will be
pro-rated. Unless you have little income in CA for the year,
you are likely to end up paying the same amount as you would
have if you'd stayed in CA overall because of the credit.

--
Chris Green

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e_gluk[at]yahoo.com (Impreza Buyer) writes:

- quote -

As a CA resident you'll pay CA tax on your entire income.
The fact that your employer is based in MI does not
necessarily mean that you'll have to pay MI income tax. You
might get a quick answer from your payroll office or the MI
instructions as to who must file.

If you do pay MI tax, I believe CA will give you a credit.
Take a look at the CA instructions.

Phil Marti
Topeka, KS

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Impreza Buyer wrote:

- quote -

If you work only in California, you will only be taxed in
California, regardless of where your company is located.

If you work in Michigan, then as you appear to remain a
CA resident, all of your income will still be taxed in
CA, and the income from your job will be taxed in MI on
a non-resident return. I can't find my CA non-resident
book at the moment, but I believe you would get a CA
credit, probably for the full amount of the MI tax,
assuming that CA tax rates are higher than MI tax rates.

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"Impreza Buyer" <e_gluk[at]yahoo.com> wrote:

- quote -

Most likely you will pay Michigan tax on your MI source
income and receive a credit for it on your CA return.

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Impreza Buyer wrote:

- quote -

CA will tax you because you are a resident.

See Form 540 Schedule S should you also find that you're
subject to MI taxes.

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"Impreza Buyer" <e_gluk[at]yahoo.com> wrote:

- quote -

The answer depends on some clarifications.
1) How much time will you be spending in Michigan?
2) Will you have a house or apartment in Michigan?
3) Where will you be traveling during the week?
4) In what industry will you be employed?
5) What are your responsibilities?

As a CA resident, you will be taxed in CA on your income.
But whether or not you owe taxes in another State is a
matter of facts and circumstances. The payroll gang at your
employer's headquarters should have some insights.

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Hello,

I live in CA and do not plan to relocate. I am starting
to work for a company located in MI in August. I will
travel during the week, coming back to CA on the weekends.

My question is which tax should I pay, CA or MI. I suspect
both, so my primary concern here is will I end up paying
double taxes (full tax in CA and full in MI), or is it
proportionally divided?

I am planning to use tax advisors help to file my return,
but wanted a quick answer in the meanwhile.

Please advise.

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