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Common questions about returns for Michigan cities in ProConnect Tax

by Intuit• Updated 1 month ago

Table of contents:

‣ Generating returns for Michigan cities
‣ Setting city residency status
‣ Entering Michigan city wages
‣ Generate the Detroit nonresident individual return
‣ Generate the Detroit resident individual return

Generating returns for Michigan cities

  1. Go to the Input Screen ⮕ Client information.
  2. In the Profile tab, enter "MI" in the Add a state return field.
  3. After adding the state, enter the desired Michigan city or cities in Add a city return.
  4. Go to State & Local ⮕ Taxes ⮕ Michigan Cities
  5. Use the Resident city dropdown to select the city you're working on.
  6. For more detailed inputs including residency status, select the Cities option on the top right corner of the screen.
    • Select the city in the City Name (Click on arrow to select from list) field.

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Setting city residency status

  1. Go to Input Screen ⮕ State & Local ⮕ Taxes ⮕ Michigan Cities.
  2. Select the Cities option on the top right corner of the screen.
  3. In the Residency (Click on arrow to select from list) field, select one of the following: ​
    • Taxpayer and (or) spouse is a Resident/part year resident - Select if the taxpayer (and spouse, if married) was a city resident during the year or any part of the year.​
    • Taxpayer is a Nonresident - Select if the taxpayer was a city nonresident for the entire year and had income earned in the city.​
    • Spouse is a Nonresident - Select if the spouse was a city nonresident for the entire year and had income earned in the city.​
    • Taxpayer and spouse are both Nonresidents - Select if the taxpayer and spouse were both city nonresidents for the entire year and both had income earned in the city.
  4. Repeat these steps for each selected city.

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Entering Michigan city wages

  1. Go to the Input Screen ⮕ Income ⮕ Wages, Salaries, Tips.
  2. Enter the employer information, wages and other applicable information from the W-2.
  3. Navigate to the State and Local section.
  4. Under Michigan-Local Wages and Withholding Information table, enter:
    • City Name
    • City Withholding
    • Date Worked in City From
    • Date Worked In City to

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  • The program performs an automatic computation of city wages for nonresidents only. The amount of wages taxable to a city is based on the dates entered in Dates worked in the city or the number of days entered in Number of days worked in the city. If the taxpayer is a part-year resident, enter the resident taxable amount. To determine wages earned in the city while a nonresident, and excludible wages while a nonresident, the program will use dates entered in Dates worked in the city or the number of days entered in Number of days worked in the city. Also enter days, if applicable in the section below such as Vacation days and Sick days.
  • City Wages [O]: This field overrides the automatic computation of city wages for nonresidents only.
  • Days Worked in the City [O]: If the wages are taxable to a Michigan city, enter the number of days worked in the city to override the computed number of days based on the dates entered. The program carries wages and withholding to the city return, as appropriate.
  • Days Worked Outside the City [O]: If the wages are taxable to a Michigan city, enter the number of days worked outside the city to override the computed number of days based on the dates entered. The program carries wages and withholding to the city return, as appropriate. If the wages were earned by a nonresident entirely outside the city, enter "1" here and the wages will be excluded from income.
  • Part-Year Nonresident Wages [O]: If the taxpayer lived both in and out of the city, enter the amount of wages earned while the taxpayer was a nonresident of the city. The program automatically computes this amount as the difference between total wages earned per W2 and the total wages earned while a resident. This entry overrides the computed amount.
  • Reason Excludible Wages Not Taxable [O]: This code is only applicable for cities that use the Common Form. Enter reason for excludible amounts to print on the Detail Schedule for wages. When the excludible amount represents military wages the reason populates automatically.
  • Income and deduction overrides are available by going to Input Screen ⮕ State & Local ⮕ Taxes ⮕ Michigan Cities.

Generate the Detroit nonresident individual return

  1. Go to Input Screen ⮕ State & Local ⮕ Taxes ⮕ Michigan Cities.
  2. Select Detroit from the Resident City dropdown. If it's not listed there, add it using the Profile tab.
  3. Select the Cities option on the top right corner of the screen.
  4. Select the drop down arrow in the field Residency (Click on arrow to select from list).
  5. Select Taxpayer is a Nonresident, Spouse is a Nonresident, or Taxpayer and spouse are both nonresidents.

Note: Input of Detroit wages must include the dates worked in Detroit in Screen 10, Wages, Salaries, and Tips. Scroll to the State and Local section to access the Local Wages and Withholding grid for input in order for the wages to populate on the Detroit Nonresident form.

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Generate the Detroit resident individual return

  1. Go to Input Screen ⮕ State & Local ⮕ Taxes ⮕ Michigan Cities.
  2. Select Detroit from the Resident City dropdown. If it's not listed there, add it using the Profile tab.
  3. Select the Cities option on the top right corner of the screen.
  4. Select the drop down arrow in the field Residency (Click on arrow to select from list).
  5. Select Taxpayer and (or) spouse is a Resident/part-year resident.

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