DMarkM1
Expert Alumni

State tax filing

Difference is because on joint return MN uses all income, even from TX, to arrive at a percentage of MN taxable income divided by total taxable income.  Your tax is first figured as if a resident of MN all year.  The percentage is then multiplied by that resident tax to arrive at the part-year tax.   So as her income is added in, the total income goes up and that number is used to figure the MN tax as a resident.  Further, her income probably pushed you into a higher MN tax bracket. 

 

Here is a link with 2023 MN tax brackets for reference. 

 

It may be prudent to figure the overall (FED and MN total) tax using both filing statuses to see which is better for you.  

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