Is non-resident income from outside Minnesota taxable by Minnesota?

Forum|Forum|2 years ago
February 24, 2024
1 reply
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Minnesota seems to state otherwise on their website.https://www.revenue.state.mn.us/how-minnesota-taxes-nonresident-income

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DawnC

Employee

Your resident state will tax all of your income. If you do not live in MN (you are a nonresident), you only pay MN tax on income you earned while working in MN or other MN sourced income. Are you a resident of MN, and where did you work, or where do you have property?

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rjadsAuthor

I live in Indiana. I worked for an Indiana company for 10 months and a Minnesota company for 2 months.

But TurnoTax is saying my MN taxable income is all 12 months.

JohnW152

Nonresidents of Minnesota calculate their tax on taxable income from all sources, just like full-year residents do.

However, Minnesota tax is then prorated. The proration is based on the ratio of your modified Minnesota adjusted gross income (AGI) to your modified AGI from all sources. So, your Minnesota tax will be based on your Minnesota AGI, not from you total AGI.

This proration is calculated on Minnesota Schedule M1NR, Nonresidents/Part-Year Residents, and the prorated tax amount is carried from line 32 of that form to line 13 of Form M1, Individual Income Tax.