You will only need to file an MN resident state income
tax return to report all income (including your ND-source wages). You will not
have to file an ND nonresident state income tax return (unless you had PA
withholdings (see below)).
MN and ND have what
is called a state reciprocal agreement. This allows nonresidents to not have
state withholding taxes taken out for wages earned in the state.
Since you will not have an ND state income tax filing,
just check that you selected "no" to " Did you make money in any
other states?" under the Personal Information section in TurboTax (see
screenshots)
You can get rid of a
state without clearing your federal return by just deleting the state from your
list of states under the "State Taxes" tab.
Please note that you
will not have a delete option until you actually start working on the state.
Select that you want to start the state return under the state taxes tab. The
system will start calculating. Then go back into the state tab at the top of the
screen and you should now get a choice for that state to either continue or
delete. You won't be charged for just starting the state return. You would only
be charged (if applicable) when you are getting ready to file.
In order to get the
full refund of your ND state income tax withholdings, you will need to file a
nonresident ND return but report zero "0" income from ND (even though
you do have ND wage income). You need to file your ND return this way because
MN does not allow a credit for tax paid to a reciprocal state on wages,
salaries and commissions. If tax was withheld by a reciprocal state (ND), you
must file directly with the state for a refund of those taxes. You must mail in
this ND nonresident state income tax return and include your state W-2
information. You will want to include an explanatory statement with your ND
return stating your situation (that your ND employer withheld ND taxes from
your wages in error due to a reciprocal agreement with MN).
