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State tax filing
This still is not clear to me. So for your example, I received $8,000. I kept $6,000 of that in "payroll" (as a sole proprietor I was allowed to pay myself 8/52 of my 2019 business net income as payroll), and the other $2000 I used to pay rent, phone, utilities, etc. So then what the state is asking is how much of the funds weren't used for expenses, which in this case is $6000, so I would enter $6000? Or are you saying that current regulations in MN don't allow me to deduct those expenses as well, so I need to pay tax on all $8,000?
‎April 6, 2021
5:19 AM