“I wanted to ask about the pros and cons of moving from michigan to texas when it comes to taxes, federal and individual tax returns.”---->I guess your question is too tough/ broad/comprehensive.TX is one of the nine states that have no state income tax. State income tax is typically based on the taxable income or adjusted gross income reported on the taxpayer's annual federal income tax return. MI's tax rate is a flat rate of 4.35 percent of federal AGI with modifications. Some cities impose additional income taxes. Sales tax in Michigan was raised from four percent to six percent in 1994. This tax must also be paid on goods purchased out of state and brought into the state by residents. It is called a "use tax" in that context and MI residents are expected to pay it along with their income taxes. Only individuals or businesses that sell physical goods to customers are required to charge sales tax. State Sales and Use Tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services.
TX cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined total of state and local taxes of 8 1/4% (.0825). Income taxes constitute those taxes levied against individual residents of states. Each state maintains its own laws regarding income tax, including tax rates and filing procedures. The question of who can file MI income taxes in Texas requires an examination of Michigan tax laws, the nature of filing taxes across state lines and tax laws in Texas.You, as an Individual, looking for information regarding a specific case of income tax may contact the department of revenue in either state or research their taxes on their websites. Per MI state tax laws, any individual earning income in the state must file a tax return with the MI Department of Treasury.. An important semantic point exists here, in that Texas residents filing taxes with MI don't file them with the state of Texas, but from TX, with the state of Michigan. For example, if an individual moves from Michigan to Texas partway though the year, that person must file income taxes with Michigan, which can be done in TX via the Internet or post, but this individual cannot file MI taxes with the Texas government. Individuals who live in Texas either part or full time but generate revenue in MI must file income taxes across state lines. Three types of taxes usually traverse state lines: nonresident taxes, part-time resident taxes and former resident taxes. The latter constitutes those who lived in MI and moved to TX. Nonresident income tax constitutes those levied against individuals living in one state but earning income in another, while part-time resident taxes constitute those levied against individuals who live in multiple states throughout the year and earn income in various places. MI maintains one form for nonresident and part-time resident taxes, which can be filed from anywhere, including TX. Various instances exist in which individuals living in Texas must file income taxes in the state of MI. TX residents who own property or a business in MI and generate revenue in the state from such ventures must file income taxes with MI, as does anyone who owns property in MI and lists that property as a primary residence, regardless of where the individual actually lives. Individuals who work in TX from a home office for a business based in MI that charges MI taxes with each paycheck must file an income tax return with the state. If the family of a deceased MI resident lives in TX, that family may file final tax forms for the deceased individual from TX. MI permits the filing of tax forms from anywhere and enables this with online filing options. |