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April 17, 2025
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CO and MI Tax Question

  • April 17, 2025
  • 1 reply
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I am a Colorado Resident.  A company from Michigan who does not have a Colorado office or affiliation wants to hire me as a sole proprietor contractor to perform IT work for them.  My business has no office or presence in Michigan.  All work would be performed remotely from my computer in Colorado on their computer systems located in Michigan. 

Where should the 1099s be filed, Colorado or Michigan? 

Would I be liable for taxes in Colorado or Michigan. 

Would I need to file a Michigan tax return?

    Best answer by AnnetteB6

    If all of your work is performed in Colorado, then your tax liability will be to Colorado.  It does not matter that the company that pays you is located in Michigan.  Since all of your income is Colorado source (where you performed the work), you would not need to file a Michigan tax return.

    1 reply

    AnnetteB6Answer
    April 17, 2025

    If all of your work is performed in Colorado, then your tax liability will be to Colorado.  It does not matter that the company that pays you is located in Michigan.  Since all of your income is Colorado source (where you performed the work), you would not need to file a Michigan tax return.

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