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April 13, 2020
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Do I pay TX or MN state taxes for working in TX half the year?

  • April 13, 2020
  • 1 reply
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Dear Tax Experts,

 

I worked and lived in Minnesota (MN) Jan 1 - Jun 30, 2019.

 

Then I worked in Texas (TX) Jul 1, 2019 thru Feb 2020 (ie this year), while living in TX and foreign countries due to employer requirement.

 

I left the TX employer end of Feb 2020, and returned to live in MN.

 

Since TX has no income tax, am I supposed to pay MN the state tax for the second half of 2019?

 

Thank you very much!

 

 

    Best answer by MayaD

    1. TX has no income tax, if you lived and worked in MN for a month, you need to file part-year resident MN return and claim the income earned while living and working in MN. 

    2.If you lived in MN and worked for an employer in TX, you need to file MN resident return and claim all your income from all sources (no income Tax in TX).

    1 reply

    April 13, 2020

    No, you would only pay MN taxes for the period of time that you were a MN resident or if you had income from a MN source.  Since you only lived in MN for part of the year, you will file a part-year resident return.

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    April 13, 2020

    Dear AnnetteB6,

     

    Reapply appreciate your instantaneous reply and advice!

     

    Two quick follow up questions:

     

    1. If I worked and lived out of Minnesota (MN) for, eg only a month, do I also only file a MN part year resident return?

     

    2. If I lived in MN but worked for an employer in Texas (TX) for a month or longer, do I file a full year MN resident return or a TX return since my income is from TX?

     

    Thank you very much!

     

    MayaDAnswer
    April 13, 2020

    1. TX has no income tax, if you lived and worked in MN for a month, you need to file part-year resident MN return and claim the income earned while living and working in MN. 

    2.If you lived in MN and worked for an employer in TX, you need to file MN resident return and claim all your income from all sources (no income Tax in TX).

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"