My wife and I have been MN residents for all of 2021.
We have rental partnerships (LLCs) in WI that give us K1s, but they posted a net loss this year.
My wife received a final W2 from her job she had worked remotely but now quit. The W2 is for $126.
Since the K1s didn't generate any income and my wife's income was only $126 do we need to file WI taxes or can we just file MN taxes?
Yes, you need to file a Wisconsin Non-resident Individual tax return if your gross income for Wisconsin is $2,000 or more. You will need to add your wife's W-2 wages and the rental properties' rents before expenses to determine if you meet this qualification.
According to this: https://www.revenue.wi.gov/Pages/FAQS/pcs-indreq.aspx
You are required to file a Wisconsin income tax return if your Wisconsin gross income is $2,000 or more. Gross income means income before deducting expenses. While net income reported to you may be less than $2,000, gross income may be over that amount, requiring that a Wisconsin income tax return be filed.
We shouldn't need to since the gross income is less than $2k.
Our K1s are not 3K-1s. Just federal K1 (form 1065). Not seeing any listing of gross income - loss for the individual K1, just the amount in Box 2 of Part 3.
Hmmm, however, If some of the K1s had a profit totaling >$2k and others had a loss which brought the net to <0 would that qualify as needing to pay state taxes?
Would turbotax tell me if I was filing taxes for a state I didn't need to? i.e. is it doing this totally for me?
Not saying I'd trust TT on this, but curious if it tries.
Yes, you are correct that you do not have to file a Wisconsin tax return for the $200 income. However, if you had an additional $1,800 of Wisconsin-based income on the K-1, you would be required to file.
No, TurboTax does not tell you if you don't have to file a state tax return. There are many reasons to file a tax return. To get a tax refund, to establish residency, to possibly get a credit or simply to file for your peace of mind.