Lived/Worked in MI - Lived in NJ - Worked in NY

[taxbrewster]

I hope everyone is well and staying safe during these interesting times. I am wrapping up one of my final returns and just need to talk this one out.

Client started year in MI living / working for Company A.

2/21/19 Moved to NJ - all work done in NY for Company A.

12/30/19 Moved back to MI still working for Company A

On the w2 has wages of 469,586 - MI wages 469,586 - MI withholding 18,983 & NY wages 469586 - NY withholding 24,026

Am I correct that we would file a PY MI return for the prorated wages in MI (64,333) - then Resident NJ claim tax paid to both MI/NY - then NY non res for prorated NY wages (405253)?

But doing this it creates a large refund of the MI withholding, which throws up internal red flag / basically break even in NJ / owes some extra to NY.

It just seems odd that he continued to pay MI withholding during the entire year. Could this be a payroll error? Or am I just completely missing the boat.

Fun twist as well - client sold 2 primary residences in the same year which both for losses but dont think I have had that happen before. Thank you.

[TaxCPANY]

I'd first explore the premise that he remained a MI resident, that his stay in NJ was temporary and non-residential despite going over 183 days.  In no other way does he seem to have taken up residence outside of MI; but you'll have to research MI 'adhesiveness.'  New York State & City wouldn't give up on your guy had he started out here, for example; those jurisdictions (and at least several others) look hard at both a taxpayer's comings & goings in more ways than one.  Also, practically speaking, how could NJ enforce any claim to residency?

[taxbrewster]

Thank you for the insight. It is looking like it was a payroll mistake - home office never changed client's address just work location and of course he did not notice.

[schirallicpa]

On 7/13/2020 at 2:49 AM, taxbrewster said:

 

But doing this it creates a large refund of the MI withholding, which throws up internal red flag / basically break even in NJ / owes some extra to NY.

 

has any one working anywhere in NY as a resident or as a non-resident not owed more to NY?...............just sayin'........hate NY.

[Lion EA]

My NY residents always owe. My NY commuters always get refunds but owe CT (or PA or...).