I work in one state but live in another, state taxes?

I work full time in Minnesota and am a full time resident of Wisconsin. I am having trouble filling out the nonresident income tax return and applying for a credit for taxes paid in another state.

1. What do I put for income allocations for Minnesota if i'm taking the standard deduction?

2. For the schedule OS, the credit for the taxes paid in another state do I use my income from question 1 or my total earned income without the standard deduction?

Thank you!

260

Expert Alumni

Jan 30, 2024 10:43:01 AM

When allocating in MN all the allocations are done before deductions. So the income should be what was actually earned in MN.

For the WI form OS, first once you complete your MN non-resident return in TurboTax the WI form OS automatically populates from the MN return.

If you have to complete the lines yourself, the income taxed by the other state is before deductions or exemptions and if only wages then it be the income earned in MN.

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I work in one state but live in another, state taxes?