Minnesota taxes everything that you earn as a Minnesota resident.
So you paid taxes on the money to Colorado. Then, Minnesota looks at the same money, charges you tax on it and gives you a credit for what you paid Colorado.
If Minnesota's tax rate is higher than Colorado's then they get to charge you the higher rate and deduct Colorado's lower rate, which is what they did.
@RAJensen
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
