Tag Archives: Michigan
Often overshadowed by their tax time counterpart – the federal income tax – state income tax rates generally receive less attention. However, they can definitely impact your overall bill, depending on where you live, where you work, and the total amount you earn. State Taxation of Residents States typically use one of three methods to […]
— Read moreTax time doesn’t have to be difficult for workers who are residents of a different state than that in which they work. Many states have enacted reciprocal tax agreements, which allows taxpayers living in certain states covered under the agreement to be exempt in paying income tax on earnings from within the work state. For […]
— Read moreIn Michigan, working families with low incomes may qualify for a state version of the Earned Income Tax Credit (EITC). Like the federal version, Michigan’s credit is offered to those with certain incomes to help encourage families to continue to work despite low wages and to keep those who do above the poverty line. Michigan’s […]
— Read moreMany major cities, or even those close to the border of a neighboring state, have a significant portion of taxpayers who travel from another state to work there. For example, many New Jersey residents work in New York City, or Marylanders may drive to Virginia. It may not seem like a hassle to cross the […]
— Read moreThe state of Michigan has a flat tax of 4.25%. What defines residency? To be considered a resident of the state of Michigan you need to maintain a permanent home with in the state for the entire tax year. If you happen to spent a long period of time out of state, for example a […]
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