Indiana State Taxes Help

October 6th, 2009

indiana state taxes help
Indiana unemployment on Michigan return.?


I live in Michigan, but received $8k in unemployment for Indiana. I’m confused on how to report this on Indiana and Michigan income tax returns. Indiana and Michigan are recripocal states. I have wages from Indiana that had MI wages withheld. When I contacted the Indiana Department of Revenue, they said I had to file the non-resident (not recripocal) return, because the unemployment was not reciprocal. So I filed Indiana, allocating the Indiana wages to Michigan and the Indiana unemployment to Indiana. One of my questions is now on the Michigan return, do I put the Indiana Unemployment as the income attributable to other states deduction on Sch. 1? Neither Indiana or Michigan specifically address what happens with unemployment benefits from a state where you are not a resident! Add in the reciprocal states information, and I’m totally confused. Can someone help me figure out if I am filing these Indiana and Michigan returns correctly in regards to the Indiana unemployment?

I have not filled out a reciprocal form – but it makes sense to me that you put the unemployment as attributable to another state. Attach a copy of your Indiana return and your federal return if you are paper filing…

You can call the Michigan Department of Treasury to ask them if you want to be more certain. 1-800-827-4000 The only problem, is that they have been extremely busy.

Or check out their web site at Michigan.gov. They have a half-way decent search function.

Governor Daniels statement on General Assembly progress toward next state budget