I lived in CA in Q1 & MN Q2-Q4. For ex. I made $1/mo, Turbotax is correctly saying $3 in CA, but it is saying I earned the full $12 in MN & I can't get it to say $9. Help

[duffy-jared]

I can't get Turbotax to say I made $9, it's considering the full year income. I have it saying I am a part year resident and I entered how much money was earned in MN, but for some reason its still taking the full amount.

[KeshaH]

For nonresidents, Minnesota calculates your state tax using full year income as if you'd earned it all in Minnesota. Then, you calculate an income allocation percentage to prorate the tax liability. The income allocation is calculated as Minnesota income/everywhere income. This rate is applied to your tentative Minnesota tax to find your prorated Minnesota tax.

In your example, your Minnesota income allocation percentage is 75%. Based on this your tentative Minnesota tax would be multiplied by 75% to come to the actual Minnesota tax you would pay.

[duffy-jared]

The issue is TurboTax isn’t multiplying by the 75%. I enter the amount allocated to Minnesota, then at the end turbo tax says my taxable income is everything I earned in the year.

[KeshaH]

Yes, the taxable income will show as the full year income as if it was all earned in Minnesota. It's the tax liability that will be prorated, not the income.