File a resident Minnesota income tax return and report all your son’s income from both states.
You son is a full-year resident of MN, even if he attends college in ND. Attending college is considered a temporary absence and not a change of residency.
Minnesota and North Dakota has reciprocity, meaning his ND employer should have withheld MN tax.
Because your son’s employer took out ND tax, you’ll have to file a non-resident ND return it get it back.
On your North Dakota nonresident return, change your son's wages to $0, print out the form and follow these steps from ND:
If you received wages covered by reciprocity, and your employer withheld North Dakota income tax of $5.00 or more from them, you must file a North Dakota individual income tax return at the end of the tax year to obtain a refund of the amount withheld.
If this applies to you and you do not have any other gross income from North Dakota sources, complete Form ND-1 as follows:
- Complete the applicable items at the top of Form ND-1, page 1 (through line E), as instructed.
- For item F, fill in the circle next to “MN/MT RECIPROCITY” at the top of Form ND-1, page 1. Also enter “MN” or “MT”, whichever applies, in the space under “State.”
- Leave lines 1 through 25 blank.
- Fill in the amount of the North Dakota income tax withheld on lines 26, 28, 29, and 32.
- File Form ND-1 with a copy of your federal return and Form W-2s showing North Dakota income tax withholding.
Have your son complete Form NDW-R and give it to his employer.
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