Live in one state and work in another

Forum|Forum|2 years ago
January 23, 2024
1 reply
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I live in Wisconsin and work in Wisconsin but my company is located in Minnesota. I work remote and have Wisconsin taxes taken out instead of Minnesota. My wife works for a company in person in Minnesota. How come our MN income tax shows higher than what we actually made in Minnesota? For example, if we made 130,000 overall, but only 65,000 was made in Minnesota why is the Minnesota taxable income showing at 95,000?

MayaD

Since you live and work in WI, you only pay income tax in WI.

MN will tax only the income earned in MN ( your wife's income). WI as your resident state, taxes your and your wife's income from all states. However, WI does offer a credit for taxes paid to another state.

You need to file non resident MN return and WI resident return. To ensure accurate calculations, always complete the non-resident return first.

How do I file a nonresident state return?

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zdinzeo22Author

Thanks, I did the Non Resident First before the Wisconsin one, but maybe because all the forms are not available its not calculating correctly. Something is definitely off because its trying to tax more than it should.