M1CR Worksheet

turner121 — Fri, 11 Apr 2025 00:27:06 GMT

On form M1CR (ND) for Minnesota return there is the Other State/Canadian Province or Territory Income and Tax Smart Worksheet where Line A and B populates. However Line C Non-composite tax paid to other state by a pass-through entity should have an amount as the taxpayer has an amount on the K1. If the taxpayer enters the amount on Line C of worksheet then TTD adds this to line 6 on M1CR.

Line 6 From the other state's income tax return, enter the tax amount before you subtract any tax withheld or estimated tax payments (see instructions). Taxpayer Amount of tax paid to other state via a non-composite pass-through entity is $1653. Tax liability is $324. Instructions for M1CR line 6 do not reference non-composite pass-through entity in the instructions. This then add the amount to M1C Schedule Other Nonrefundable credits Line 3 which says to include M1CR $1977 . This then feeds to M1 Line 16 which then reduces taxable income. Also note this is added to MN AGI on line 2 on M1.

Please confirm if Other State/Canadian Province or Territory Income and Tax Smart Worksheet is incorrectly adding the $1653+$324 to line 6 if the M1CR. Or if MN intentionally makes the pass thru WH taxable and then remove the credit. If the taxpayer removes from worksheet then confirm is that would be double taxation which is what MN intends to not happen by this PTE.

Re: M1CR Worksheet

turner121 — Fri, 11 Apr 2025 01:11:30 GMT

Link to Community This article may assist in avoiding double taxation.

topic M1CR Worksheet in State tax filing

M1CR Worksheet

Re: M1CR Worksheet