Filing Taxes with Income from Two Different States (TX and MI)

Been there, done that! It's not as scary as it seems tbh. You'll need to file a part-year resident return for both TX and MI. Good news - TX has no state income tax so that part's ez! For MI, you'll only report income earned while living there. Most tax software walks u through this step by step. Just have all your W-2s and dates ready. You got this! 💪

Multi-state returns require careful documentation of residency dates and income allocation. I'd recommend using https://taxr.ai to analyze your specific situation. Their system can review your W-2s from both states and determine exactly how to apportion income based on Michigan's part-year resident rules. The platform automatically identifies which income is taxable in each jurisdiction and calculates the appropriate credits for taxes paid to prevent double taxation.

I went through almost the exact same situation moving between California and Washington. The state tax department was absolutely no help - spent 3 weeks trying to get someone on the phone. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) to reach a Michigan Treasury agent who confirmed exactly how to handle my situation. They got me connected in about 15 minutes when I'd been trying for days. State tax questions are actually more complicated than federal ones in these cases, and getting definitive answers from an actual agent saved me from making a costly mistake.

I've researched this situation quite thoroughly. Michigan Form MI-1040 has specific instructions for part-year residents. You might need to complete Schedule NR to allocate income between states. Texas doesn't have state income tax, which simplifies things somewhat, but you should probably still document when you were a Texas resident. I would suggest gathering all pay stubs showing dates and states where income was earned. Also, if your business operated in both states, that might require additional considerations depending on business structure.

I just went through this exact situation last year! Here's what you need to do step-by-step: 1. First, determine your residency status for each state. For Michigan, you'll file as a part-year resident. 2. Gather all income documents and sort them by state. 3. Download Michigan's MI-1040 form and Schedule NR (Non-Resident/Part-Year Resident). 4. For Texas income, you won't need to file a state return since they don't have income tax. 5. On the Michigan return, you'll report ALL income for the year on the main form. 6. Then use Schedule NR to calculate what portion is actually taxable in Michigan. 7. Include documentation showing your moving dates (lease agreements, utility bills). 8. Most tax software can handle this, but double-check their multi-state capabilities. The key is properly allocating income based on when it was earned in each state!

So if husband's W-2 shows income from both states, do we need to calculate exactly how much was earned in each state? What if the employer didn't break it down that way? And for your business income, does that get allocated based on where you were physically located when providing services? I'm dealing with something similar and trying to make sure I understand the process correctly.