Hello,
I was wondering if anyone could suggest a solution to my situation. I am a Michigan resident who did a 13-week internship in California during 2010. The state of California withheld state income tax as well as SDI tax from me and I am trying to figure out if there is a way to get that back. Also, I am not sure whether I still should file Michigan state tax return. Please let me know if you know!
Thanks!
You are required to file a nonresident CA tax return (Form 540-NR). That will determine how much income tax you owe CA and whether you get a refund or owe more. The amount withheld for CASDI is not a refundable income tax. However, it is a deductible income tax on your federal return if you itemize on Schedule A.
As a MI resident you are required to include all your wages on the MI-1040 regardless of where you earned them. MI will provide a tax credit for taxes paid to CA that MI is going to tax. See the MI-1040 instructions for Line 5 Nonrefundable Credits on Schedule 2.
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