Possibly both. It is definitely taxable to her home state and depending on the amount of gain, possibly in MN as well.
You’re considered a nonresident of Minnesota if you meet both of the following conditions:
- You’re a permanent resident of another state or country, and
- You’ve spent less than 183 days in Minnesota
If you are a nonresident you may still need to file a Minnesota tax return. The wage or salary income you earn while physically in the state may be taxable. If you’re working in another state for a business located in Minnesota, that income is not taxable in Minnesota. For more information, see
How Nonresident Income is Taxed by Minnesota.
Note: If you’re a resident of Michigan or North Dakota but work in Minnesota, you may not have to file a Minnesota tax return. For more information, see
Reciprocity.
