Hubby and I are WI residents. Hubby works in WI, I work in MN. How come Minnesota taxable income is more than the amount I actually earned in MN ?

[DanielV01 · Accepted solution]

Minnesota only taxes your income.  However, Minnesota requires a couple who is filing a joint Federal return to file a joint Minnesota return.  Minnesota will then pretend that all of your income (including your husband's) is taxable in MN, and then prorate the amount of tax to the amount of income actually earned in MN.  Minnesota does not tax your husband's income, but will use it to determine how much tax you pay on your income as a joint filer.