rjs
Level 15
Level 15

State tax filing

If you live in Wisconsin, you will be a Wisconsin resident.


See the following fact sheet for the definition of a Minnesota resident for income tax purposes.


Minnesota Income Tax Fact Sheet 1, Residency


Although it is possible to be considered a resident of two states, you don't really want to maintain your Minnesota residency. If you did that, you would have to pay tax to both states on all of your income. You can have only one domicile. If your home is in Wisconsin and you live there, Wisconsin will be your domicile. I assume you will sell your home in Minnesota. If so, you will no longer meet the definition of a Minnesota resident.


Where you shop is not one of the factors that is considered in determining your residency.


The income that you earn from working in Minnesota is subject to Minnesota tax, no matter where you live. All of your income is subject to tax by the state you live in, no matter where the income is from. If you are a Wisconsin resident and a Minnesota nonresident, you will file a Wisconsin resident tax return and a Minnesota nonresident tax return. You will get a credit on your Wisconsin resident tax return for part or all of the tax that you pay to Minnesota, so that the income is not double taxed.