Do I qualify for the Minn and North dakota reciprocity?

husker6- — Thu, 06 Jun 2019 14:16:48 GMT

It depends - The MN and ND reciprocity agreement relates...

DS30 — Thu, 06 Jun 2019 14:16:50 GMT

It depends -

The MN and ND reciprocity agreement relates to "earned" income by a resident of one state not being taxed in the other state. This agreement only relates to earned income like wages and not passive income like rental income.

So if you are a resident of MN and earned wages working in ND, then your ND employer should only have withheld MN state withholdings if you informed your employer that you were a resident of MN and you will only need to file a resident state income tax return in MN (the resident state). No ND nonresident state return is required.

However, if state taxes were withheld in the nonresident state (ND in the above example), then you will not be able to claim a credit in your resident state (MN in example).

In order to get the full refund of your nonresident state income tax withholdings, you will need to file a nonresident return but report zero "0" income from the nonresident state. You need to file your nonresident state return this way because your resident state does not allow a credit for tax paid to a reciprocal state on wages, salaries and commissions. If tax was withheld by a reciprocal state, you must file directly with the state for a refund of those taxes. You must mail in this nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your return stating your situation (that your nonresident state employer withheld nonresident state taxes from your wages in error due to a reciprocal agreement with your resident state).

topic Do I qualify for the Minn and North dakota reciprocity? in State tax filing

Do I qualify for the Minn and North dakota reciprocity?

It depends - The MN and ND reciprocity agreement relates...