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Tax Questions - What is 0 divided by 0 (not a math quesiton) - Michigan Nonresident Schedule NR? |
I lived in Michigan all of 2006 (I also got married in 2006) and my wife lived in Michigan only in December (rest of the year she lived outside of this country). In Michigan personal exemption allowance of $3300 is based on Taxable Income instead of time of residency. In the Michigan Tax Schedule NR form Worksheet 7 form (nonresident and part-year resident schedule form) it ask to divide Michigan taxable income of spouse divided by total taxable income of spouse. My spouse has no income so it is 0 divided by 0. Then it asks to multiply that and 3300. So is 0/0 = 0 or 1? So can we take 0 or $3300 allowance. Thanks in advance for your help. 0 divided by zero=0 maybe I don't understand your question but I'd say you and your wife file as joint residents of Michigan for full tax year. you are trying to figure percentage of income from another state and there is no other state. You both will be full year resident and no need to do what you are trying. Look at it this way. If the spouse earned nothing in the state there is no exemption no matter what the total is. Logically it would not jump to $3300 with no earnings. It must logically be $0. The rule was written by lawmakers not accountants. Most people would assume 0/0 is zero even if not mathematically true. The rule doesn't even make sense. If your wife earned 1垄 in the state there is a $3300 deduction. The more I look at the rule the more confusing it becomes. In the instructions on the form, it says "Note: If one spouse was a full-year Michigan resident and the other a part-year or nonresident, and you are filing a joint return, complete the worksheet on page 43. Do not complete lines 15-18." It sounds like that would apply to you and your wife, so you would not even be completing the line you refer to, so wouldn't be dividing zero by zero. 0/0=0 It appears (on Worksheet 7) if your wife has no Michigan income, she is not allowed an exemption deduction. |
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