I am a full-time resident in Wisconsin, who earns income in Minnesota and files for income taxes in both states every year.
Due to Covid-19 and full-time working from home, my employer (in MN) adjusted my taxable income to MN as a partial year (January-March) and adjusted my taxable income to WI (January-December) on my W-2. However, when using TurboTax to file MN state income tax, the calculated taxable income is 75% of my federal taxable income.
Its almost as if the software can't handle the edge case of earning income in a state as a non resident partially in a year (January-March), as my MN taxable income should be AT MOST 25% of my federal taxable income, not 75%.
How do I fix the calculated taxable income for MN to be the appropriate amount (25% of my federally taxable income), or am I missing something here?
