Yes, she will have to file in a tax return for both states.
She will have to file a nonresident Wisconsin tax return and a resident Minnesota tax return. The nonresident tax return needs to be completed before the resident tax return. This is required so that the Wisconsin state taxes paid will be entered on the Minnesota tax return as an Other State tax credit.
Using the TurboTax online editions when entering the personal information she needs to indicate that her resident state is Minnesota. The question will be asked if she made money in another state so answer YES and then select Wisconsin as the other state.
