I have worked in Ohio for all of 2008. I did not change my residency from Michigan to Ohio until mid-January. I got my w2 and have a Michigan and Ohio form. The Michigan form has less than $1000 for state wages. The Ohio form has the rest of the percentage of my federal wage.

How do I file?

It appears that you have 2 W-2's, one from Michigan and I from Ohio! This means that you would be filing a multi-state personal tax return, as a Non-Resident of Ohio and a resident of Michigan, this is assuming that you changed your residency to Ohio in January 2009.

You would unfortunately have 3 tax returns, 1 for the federal 1040, 1 tax return for Michigan State and 1 tax return for Ohio. You would only pay tax on the total income earned and have no fear, you will not be taxed twice on all your income.

The downside is that your CPA or your Tax Preparer would charge for the additional state tax return, a fee increase ranging anywhere from $75 to $125 depending on which tax service firm you decide to prepare your personal tax return.

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