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March 19, 2025
Question

how do I file my tax returns if I have two states returnsand both states are reciprocity states

  • March 19, 2025
  • 1 reply
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im using turbotax and it has me with two states taxes returns one in Mi and 0ther is Oh and theses two states are reciprocity states do i start over and put everything in under one state

1 reply

LenaH
March 19, 2025

It depends on your state withholding and your type of income. 

 

Generally, you would only have to file a nonresident return in the reciprocal state if taxes were erroneously withheld for that state (rather than for your resident state). For example, if you are a Michigan resident, work in Ohio and your employer withheld Ohio state income tax. In that case, you'd still have to file a nonresident Ohio return for a refund of taxes withheld. 

 

You may also have to file a nonresident return in the reciprocal state if you have other types of income, such as business income earned from business activity, lottery winnings, or income/gain from property.  

 

Otherwise, if you are a resident of either of these states, you can file your resident return and only pay your state tax on your wages earned in the reciprocal state. As a Michigan resident, you'd only pay tax on your Michigan return for wages earned in Ohio. The opposite would be true if you were a Ohio resident working in Michigan. This only works if your employer withheld taxes for your resident state. 

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