Author Topic: rent apartment in WI, "live" and file taxes in MI  (Read 1848 times)

bortman

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rent apartment in WI, "live" and file taxes in MI
« on: December 30, 2015, 11:50:11 AM »
I'm in a (maybe not so) unique situation. I work and rent an apartment in Wisconsin. My wife lives and works in Michigan. We are both owners of the Michigan house.

Our federal and state income tax filing status is "Married filing jointly", and we're able to itemize due to our mortgage interest.

On our Wisconsin state return, for "Resident Status", I declare that both my wife and I are "Nonresident of Wisconsin; state of residence _MI_". This allows me to get back all the taxes that I paid to WI.

Subsequently, on our Michigan state return I report my WI income and pay my taxes to Michigan.

I'm wondering if there is any way that I can claim a tax deduction or credit (e.g. homestead credit) for the rent that I pay in Wisconsin.

seattlecyclone

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Re: rent apartment in WI, "live" and file taxes in MI
« Reply #1 on: December 30, 2015, 02:11:33 PM »
Rent that you pay for a residence generally isn't a deductible expense.

Is there any way you can find a job in Michigan, or she can find a job in Wisconsin? Even if one of you has to take a huge pay cut, the amount you spend on the apartment and travel between the two states would probably exceed the pay cut. Plus, spending most of your time in the same place as your spouse is its own reward.

bortman

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Re: rent apartment in WI, "live" and file taxes in MI
« Reply #2 on: December 31, 2015, 07:40:08 AM »
There's a renter's credit in Wisconsin, but the first criteria is that I must be a resident. For the purposes of taxes, I'm not. There are other criteria that disqualify me as well. I guess I was hoping to find others with similar experience to learn if/how they manage similar situations, tax-wise.

Regarding finding a job in each-other's home state ... that is our intention and the arrangement we have now will not continue indefinitely. For more that a decade, we both lived in the same place (walking/biking distance to work for both too) until the jobs became intolerable. Unfortunately, the financial benefits of the current living arrangement are good. Obviously, we'd prefer to be in the same place, but we're making it work for now.

DavidAnnArbor

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Re: rent apartment in WI, "live" and file taxes in MI
« Reply #3 on: January 04, 2016, 07:50:24 PM »
The homestead property tax credit in Michigan requires very low income to qualify.