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Common questions about returns for Michigan cities in Lacerte

by Intuit•4• Updated about 17 hours 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 Screen 1, Client information
  2. On the left, select Add Cities under Michigan in the Returns
  3. Select the Michigan City to add to the Return.
  4. Go to Screen 54.149, Michigan City Returns.
  5. If a resident of the city, select the Resident City from the drop down selection list under the Gen Info & Contrib. screen.
  6. If not a resident of the city, select the "1" in the Cities box on the left side of the screen
  7. Select the city in the field City Name (Ctrl+T) from the dropdown selection list under Michigan Cities.
  8. Select the residency status in the field Residency (Ctrl+T) from the dropdown selection list under Michigan Cities.

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Setting city residency status

  1. Go to Screen 54.149, Michigan City Returns.
  2. Under Cities on the left panel, select the appropriate city.
  3. In the field Residency (Ctrl+T), 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 city listed in this screen.

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Entering Michigan city wages

  1. Go to Screen 10, 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 enter the City Name, City Withholding, Date Worked in City From, and 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 in Screen 54, Taxes, under Michigan Cities.

Generate the Detroit nonresident individual return

  1. Go into Screen 54.149, Michigan City Return.
  2. Select Detroit from the Cities list on the left. If it's not listed there, add it.
  3. Select the drop down arrow in the field Residency (Ctrl+T).
  4. To generate the nonresident return 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 Screen 54.149, Michigan Cities.
  2. Select Gen Info & contrib. in the Cities section.
  3. Add Detroit to the Cities list if not added already.
    1. On the left-hand column, select on the Add under the Cities section.
    2. In the first field City name (Ctrl+T) on the drop-down menu choose Detroit.
    3. If Detroit isn't on the list,select Add a city on the dropdown list.
  4. Select a Residency.
    1. Select Detroit in the Cities section.
    2. In the field Residency (Ctrl+T), use the dropdown menu to select the applicable status Taxpayer and (or) spouse is a Resident/part-year resident.

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