Can You Live in Indiana and Work in Michigan?
Are my wages earned in another state taxable in Michigan if I am a Michigan resident? Yes. If you are a Michigan resident, all of your income is subject to Michigan tax, no matter where it is earned, except income reported on federal schedule C, C-EZ, E or F earned from out-of-state business activity.
Do you pay local taxes if you work from home?
In general, if you’re working remotely you’ll only have to file and pay income taxes in the state where you live. However, in some cases, you may be required to file tax returns in two different states. This means you’ll be double-taxed, but it doesn’t necessarily mean that you’ll pay twice as much in taxes.