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posted Jun 1, 2019 12:03:01 PM

I live in Wisconsin but work in Minnesota. My MN taxable income is greater than the Wages and Salary in Minnesota by $25K. Why is this?

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Expert Alumni
Jun 1, 2019 12:03:03 PM

Minnesota pretends that all of your income is taxable in MN, figures out the hypothetical tax on that amount, and then prorates the tax calculated to the percentage of income earned in MN.  

If either you are married, and your spouse doesn't work in Minnesota, or if you have another source of income that is not from Minnesota, Minnesota might be including that income to determine the prorated Minnesota tax, and that's what you might be seeing.