Incarceration in one state lived in another state

[Foxy-Lady]

Client was incarcerated from 4/30/24 to 4/8/25 in WV. Prior to that client resided in MI and returned to MI. How do I classify his resident.  Part-time MI and Non-Resident WV or Part-time for both states?

Also, do I file State for WV (Income Tax withheld) or I can just do Michigan showing the WV income and taxes?

[IRonMaN]

I believe you would file in both states with MI being the resident state and WV the non-resident state.  You should get a credit in MI for the taxes paid in WV.

[tomstires]

Incarecration in generally viewed as a temporary absence from their primary tax home.  In your case you client having returned to MI would file their taxes in MI only for 2024 and 2025 unless they had reporatble EARNED income while incarcerated or thereafter in WV.  

[IRonMaN]

There was WV tax withheld so I am going to assume that there was also WV income to go along with it.

[tomstires]

If there was withholding than there likely was associated WV nexus earnings requiring a filing of a WV return if they met thefiling requirement threshhold.

[BobKamman]

Where was he convicted?  MI, WV or some other state?  Had he lived in WV before all this happened?  

[sjrcpa]

How did he earn taxable income with WV withholding while incarcerated?

[BobKamman]

Maybe it's like that guy in Florida who was sentenced to a year in jail but got released during the day so he could work in his home office.  

[Foxy-Lady]

Resident of Michigan.  Jailed in WV from 4/24 to 4/25.  Came back to Michigan.  Earned income in WV since he was on a work release program.  From what I figured, I file in both states as part-time resident.

[IRonMaN · Accepted solution]

Part-time resident means he was a resident of both states at times during the year.

[BobKamman]

I would file nonresident WV and resident MI, taking credit for WV tax paid (if any).  At least for 2025; he was there only 4 months, and not voluntarily.  

[Foxy-Lady]

would he be considered a full time resident of Michigan?

[IRonMaN]

Yes

[sjrcpa]

His "stay" in WV was a temporary absence from MI.

[BobKamman]

Did he change his vehicle and voter registration from Michigan?  Did he move all his possessions out of Michigan?  What you need to look at is that Michigan's tax rate of 4.25% is higher than West Virginia's rate, which starts at 2.2%.  If he wants to enjoy the benefits of Michigan residency, he should expect to pay for them, even when he's temporarily absent.  

[shf1957]

This is easy... his main home is MI and probably his DL states that.   His absence, so be it in Jail/Prison/College etc. etc.. is a temporary absence.... IF he worked  or made any taxable income while on his absence in WV.. he would file as a NON RESIDENT for that state.. but for sure he is a RESIDENT for the year in MI.  (NOT PART YEAR in either state)   

I have had clients in the past under the same type of situation... and Prison is not a residence.. its a correction center... like college is an educational center.  ( think of it that way and it will make sense to you)   Good Luck! 

[Foxy-Lady]

I agreed with your findings.

[ljr]

I would file resident MI nonresident WV