Skip to main content
March 25, 2020
Question

state return

  • March 25, 2020
  • 1 reply
  • 0 views

turbo tax is entering mortgage interest and point on M1SA  Minnesota tax form  I live and purchased the home in Wisconsin ? 

1 reply

DaveF1006
March 29, 2020

State taxes are always a challenge to determine because of the way that their tax codes are constructed.

  1. Minnesota determines their tax by taking all federal income and itemized deductions under consideration and then assessing a tax on that amount. For sake of argument, let's say this amount is $2200. Then it applies a ratio of the amount of income earned in Minnesota/all income. So say if your total federal income is $75,000 but your Minnesota income is $50,000 then your tax is determined by ($2200)(50/75)=$1467. I know that reporting the mortgage interest in Minn M1SA adds to the confusion but the process I outlined is how the income tax is calculated in Minnesota.  It takes an account of the federal income and deductions and then applies the ratio of Minnesota income vs all income.
  2. Wisconsin give an itemized deduction credit rather than a deduction on your home mortgage. Look at your Wisconsin Form 1, page 4 for more details.
**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"