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Telecommuting

Telecommuting

What is Telecommuting?

Telecommuting, or working remotely, is the concept of working at home through a computer or telephone.

Detroit Residents

If you are a Detroit resident, all of your income is subject to Detroit tax, no matter where it is earned.

Detroit Nonresidents

Only Telecommuting Wages

A nonresident is not subject to tax on wages earned while telecommuting from a location outside the city.

Wages Earned Within the City and From Telecommuting

All wages earned while working within the City of Detroit are taxable. If some wages were earned within the City of Detroit and some from telecommuting, then nonresidents should:

  • File using the City of Detroit Nonresident Income Tax Return (Form 5119);
  • Include the City of Detroit Withholding Tax Schedule (Form 5121); and
  • Complete part 3 of Form 5121.

Documentation for Nontaxable Income

The employee should keep a work log of the days worked outside the city. Employers should provide employees with a letter, on company letter head, stating the dates that employees were directed to work from home. The employees are not required to submit the work log and employer letter with a city income tax return, but taxpayers should still retain the documents and may be required to furnish the documents upon request by a city tax administrator.