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rrlharlan
New Member

How do I show on my Minnesota state return, that I only made $13,500 in their state, and the remaining funds from my federal return are from Iowa?

Minnesota is taking my federal amount and taxing that vs. just the 13500
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1 Reply

How do I show on my Minnesota state return, that I only made $13,500 in their state, and the remaining funds from my federal return are from Iowa?

@rrlharlan 

 

AFTER, you Federal forms are fully filled in (every scrap) You will need to indicate what portion of your total income was actually MN income during your step-thru the MN non-resident interview.  Until that interview and allocation is done, the MN forms may "seem" to indicate that they are taxing everything.  But Federal forms need to be fully filled in first.

_______________

Most state's nonresident taxes work that way. They start with total Federal income, then either:

1) calculate a  tax on all of it, then ratio it down based on what % was actually earned in their state.

or

2) Calcualte a total state taxable income based on Fed, then ratio it down based on the % of total earned in that state (more common for states with a flat tax rate)

_________________

You also need to work on the MN Non-resident tax forms and complete them, before working on your IA interview.  You have to do it in that order, so that the IA forms calculate the proper credit that IA allows you for having already paid taxes to MN.......thus, the MN forms need to be done before IA.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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