@ankaratop wrote:
The question is does the combination of MN tax and reduced Federal equal to Higher Federal only with no FL tax?
There is a simple (relatively, at least) way to make this determination and it only involves your federal marginal tax bracket and your MN tax liability.
The quick answer to your ultimate question is almost certainly, "No, you do not pay more in combined federal and MN state tax than you would with federal-only and no MN state tax (the latter with a higher AGI). The rationale for the foregoing is that when you pay MN state tax you pay 100% on the dollar while the federal income tax savings for not paying MN tax is not dollar-for-dollar.
You can play around with the numbers in TurboTax very easily and I am virtually certain you will discover that you are far better off without the MN tax liability than with it, albeit at a lower federal AGI.
