How Do I File A Detroit City Tax Return On Turbotax
Dude, the tax man cometh, and this time, he's rollin' straight outta the Motor City. We're talkin' Detroit City Income Tax, and if you think your Federal and State returns are a buzzkill, buckle up. Dealing with city taxes in a place like Detroit via an online tool like TurboTax can feel like trying to parallel park a monster truck in a tiny spot—tricky!
But don't sweat it! We're gonna break this down, step-by-step, with all the juice you need. This ain't your grandma's boring tax guide; this is the ultimate, no-nonsense, hilariously accurate walkthrough to getting that Detroit city return filed right on TurboTax. Get your W-2s, pour a giant cup of coffee, and let's go!
Step 1: Laying the Foundation – The Federal and State Hustle
Before you can even whisper the word "Detroit," TurboTax needs the skinny on your whole financial life. Think of your Federal return as the main event, and your State (Michigan) return as the opening act. The City return? That's the afterparty that only happens if the first two went down right.
| How Do I File A Detroit City Tax Return On Turbotax |
1.1 Gotta Finish Federal First, No Cap
You absolutely must complete and finalize your Federal tax return. TurboTax pulls a ton of data from your Federal forms (like your total income, deductions, etc.) to auto-fill the State and City returns. Trying to skip this is like starting a road trip from the middle of the ocean—it just ain't gonna work.
1.2 Michigan State: The Bridge to Detroit
Next up is your Michigan (MI) state return. This is where the magic (or madness) begins for city taxes. As you navigate the Michigan section, TurboTax will eventually ask you about local taxes. This is your cue!
Tip: Highlight sentences that answer your questions.
Look for a screen that asks, "Which Cities Did You Live or Work In?"
Select the box that indicates you need a Detroit City return.
Pay attention, player: You'll have to declare your residency status here: Resident, Nonresident, or Part-Year Resident. This is a huge deal because Detroit taxes residents on all income, but nonresidents only on income earned within the city limits. Get this wrong, and you're cooked.
Step 2: Entering the D-Zone – Detroit Residency and Wages
Once you've told TurboTax you're ready for the Detroit action, the program will switch gears. This is where you might get a refund (if you're a nonresident who had too much withheld) or find out you owe a little extra scratch.
2.1 Choosing Your Detroit Taxpayer Status
On the "Your Detroit Return" or similar screen, re-confirm your status:
Detroit Resident: You lived in the city full-time. You're taxed on all income, period.
Detroit Part-Year Resident: You moved in or out during the year. You'll enter the exact dates you lived there.
Detroit Nonresident: You lived outside the city but worked inside it. This is where most of the refund action happens. If you were a nonresident and your W-2 shows Detroit city tax withheld (usually listed with 'DET' in Box 20), you need to make sure the program knows how much of your work was actually done in the city.
2.2 The Nonresident Allocation Hustle (The Key to the Refund!)
If you're a nonresident, especially if you worked remotely part-time, listen up! This is the most crucial step to save you some dough. You only pay tax on the days you physically worked inside Detroit city limits.
In the Detroit Wages section, you should see your income listed from your W-2. Click 'Edit' next to the relevant W-2 wages.
Look for an option called "Working Days Allocation" or something similar. This is not a drill.
You'll be prompted to enter a few key numbers:
Total Working Days in the Year: Typically 260 days for a full-time, 5-day-a-week job, not counting weekends.
Total Days Worked in Detroit: This is the exact number of days you physically set foot in the city for work.
Total Days Not Worked (Vacation, Holidays, Sick Days, etc.): This includes all your paid days off.
Pro Tip: You need to be prepared to back this up. The City of Detroit is strict on nonresident allocation. If you claim fewer than 100% of your wages were earned in Detroit, you should have an employer letter verifying your work location and a personal work log (like a calendar or spreadsheet) just in case the City asks for documentation. Seriously, keep a log!
Tip: Let the key ideas stand out.
Step 3: Final Review, Forms, and Sending it Out
You're in the home stretch! The hard part is over, but now you gotta dot the i's and cross the t's so this thing actually gets filed.
3.1 Form Check: Is it Even There?
Once you've cruised through the prompts, TurboTax should generate the necessary Detroit City form. For residents, it's typically Form 5120. For nonresidents, it's generally Form 5119 (or 5121 for the wage allocation schedule).
"We determined you do not owe or are due a refund for city of Detroit" is a common message, even if you did a return, so don't freak out. Just make sure the forms are there in your final return PDF.
3.2 E-File vs. Snail Mail – Know the Difference!
Detroit is one of the cities that can usually be e-filed right along with your Michigan State return through TurboTax.
If you're a non-resident claiming an allocation/refund, make sure the e-file option is available for the city. Occasionally, for complex city returns, TurboTax might require you to print and mail the Detroit return separately. Pay attention to the final instructions screen!
Reminder: Revisit older posts — they stay useful.
3.3 Print and Save That Paperwork
Whether you e-file or snail-mail, you're gonna want a hard copy and a digital copy.
Print out the entire PDF of your return (Federal, State, and City).
Save the electronic file somewhere safe.
If mailing, sign the Detroit form (like the D-1040) where it says to, slap a stamp on it, and send it to the address provided by TurboTax (or the official Detroit Income Tax Division address, just to be sure!). Mail it early, man!
FAQ Questions and Answers
How do I allocate my wages for non-resident status in TurboTax?
You need to go into the Detroit City section of your state return, select your wages for edit, and choose the "Working Days Allocation" option. You will then enter the total days you worked in the year and the specific number of days you physically worked inside the City of Detroit limits.
What Detroit City tax form will TurboTax generate for a non-resident?
TurboTax typically generates Form 5119, the City of Detroit Non-Resident Individual Income Tax Return, and possibly Form 5121 (Schedule N in older years) for the wage allocation calculation.
Tip: Reflect on what you just read.
Can I file just my Detroit City tax return with TurboTax?
No, you cannot. Detroit city taxes are filed as part of your Michigan State return process on TurboTax. You must at least go through the Michigan state section to generate and file the Detroit return.
Why did TurboTax say I don't owe or get a refund but I know I paid Detroit tax?
This is a common sight. It usually means your payments exactly equaled your tax liability after the program calculated it. The actual tax forms (like Form 5119) should still be in your final PDF return to show the full breakdown.
What is the most important thing to remember for a nonresident Detroit tax return?
The absolute most important thing is accurately calculating and documenting the days physically worked inside Detroit versus total working days. If you claim a refund based on working remotely, have that employer letter and personal log ready in case the City requests it.
Would you like me to find the current mailing address for the City of Detroit Income Tax Division, in case you need to mail your return?