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erinmhagen
New Member

I am confused about my refund/what I owe. I work in ND but live in MN.

 
1 Reply
DS30
New Member

I am confused about my refund/what I owe. I work in ND but live in MN.

You will only need to file an MN resident state income tax return to report all income (including your ND-source wages). You will not have to file an ND nonresident state income tax return (unless you had PA withholdings (see below)).

MN and ND have what is called a state reciprocal agreement. This allows nonresidents to not have state withholding taxes taken out for wages earned in the state.

Since you will not have an ND state income tax filing, just check that you selected "no" to " Did you make money in any other states?" under the Personal Information section in TurboTax (see screenshots)

You can get rid of a state without clearing your federal return by just deleting the state from your list of states under the "State Taxes" tab.

Please note that you will not have a delete option until you actually start working on the state. Select that you want to start the state return under the state taxes tab. The system will start calculating. Then go back into the state tab at the top of the screen and you should now get a choice for that state to either continue or delete. You won't be charged for just starting the state return. You would only be charged (if applicable) when you are getting ready to file.

In order to get the full refund of your ND state income tax withholdings, you will need to file a nonresident ND return but report zero "0" income from ND (even though you do have ND wage income). You need to file your ND return this way because MN 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 (ND), you must file directly with the state for a refund of those taxes. You must mail in this ND nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your ND return stating your situation (that your ND employer withheld ND taxes from your wages in error due to a reciprocal agreement with MN).


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