@Rae2020 Colorado as your home state taxes all income. Colorado residents can claim a credit for the taxes paid to the other state. [§39-22-108, C.R.S.] The credit is limited to the smaller of the Colorado tax calculated on the income from sources in the other state or the actual tax paid to the other state on such income.
You will need to do your Minnesota non-resident return first. As you did not live in Minnesota. If you only telecommuted and never actually had to be in Minnesota for visits, you should get a refund of all the taxes paid.
Nonresidents who telecommute may need to apportion their income based on the number of days they work from home. For Minnesota in-come tax purposes, nonresidents will need to divide the number of days worked in Minnesota by the total number of days worked.
When you do your colorado return, you will get a tax credit. TT handles this very nicely.
Make sure in the personal interview you answer the questions about working out of state.
you will need to contact your employer for the fact you live and telecommute elsewhere. Do note many employers are not set up to withhold taxes from all states, and you may have to pay estimated taxes to Colorado to ensure you have proper payments.
Good luck.
**I don't work for TT. Just trying to help. All the best.
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**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
