Hi All, I have been a resident of North Carolina for all of 2013 and some of 2012, I have my car registered, my full time job, my apartment. I never intend to return to my old state of MO, or to ever move to MI (where my wife lives).
Due to Job and Family, my Wife has lived in Michigan all of 2013, and some of 2012. She too has a part time job, car, and family Home in Michigan. Will probably never move to NC or return to MO.
Clearly, NC allows me to File a Joint Federal Return, and a Individual State Return. Filing Requirements
I filed a Joint Federal return, using my address in NC, and my USAA bank in Tx.
Michigan is where I have the question. In the MI-1040 instructions it says :Who Must File a Joint Return. File a joint Michigan return if you filed a joint federal return. If you and your spouse filed separate federal returns, you may
file separate or joint Michigan returns. You may file a joint return only with your spouse.
Because NC does not adjoin MI, there is no automatic reciprocity agreement, and due to tax exemptions I pay a very low effective tax rate in NC. While the MI tax rate is a flat 4.25%, I would have no exemptions, and would have to pay income tax.
Am I misunderstanding it, that I have to file a Joint MI tax return? Common sense would say I only need to have my wife file, after all she is a resident and has income in MI, and I have neither. Is it right that I have to pay MI taxes just because I filed a federal Joint return with person who is a resident of MI?