Live in Minnesota but work in Wisconsin. I owe MN 2k.

[holmgren]

I live in MN but work in WI.  I have never owed MN more than 30 dollars before.  This time because of my 3 weeks of WI unemployment benefits ($2910) during last years Coronavirus stuff, I now owe MN $2081.  When I went to do my MN state filing it popped up a message saying,

"Just letting you know we have automatically made these adjustments based on information from your federal return since Minnesota has not conformed to federal tax law changed enacted after December 31, 2018.

Unemployment Exclusion Adjustment

On your federal return, we've calculated an unemployment compensation exclusion in the amount of $2910. We've added that amount back to your Minnesota income."

So am I pretty much screwed with this?  I was not expecting this at all.

Matt

[ErnieS0]

At this time Minnesota does not recognize the $10,200 exemption for unemployment. 

MN says: The American Rescue Plan Act was signed into U.S. law on March 11, 2021. We're analyzing how this law may impact Minnesota taxes and watching for possible state law changes. For updates, check this page and subscribe to our Tax Law Changes email list.

You can set up a payment plan with MN. Once you receive a bill, you may request a payment agreement online by going to the Payment Plan Agreement System.

If you want to set up a payment agreement before you receive a bill, you must contact the Minnesota Department of Revenue by phone, email, or letter.

Related Resource:

• Payment Agreements

[holmgren]

Well that is messed up, thank you.  What I dont get is how I was only paid 2900 but somehow owe 2000 to MN. 

[ErnieS0 · Accepted solution]

A lot of people are in your same situation. Most people do not withhold state tax from unemployment. In your case, you probably would not be able to withhold state tax because Wisconsin does not tax unemployment received by nonresidents.

The amount you owe does not sound correct. MN's highest tax rate is 9.85%. It's possible you owed before including unemployment. You can change your unemployment to $0 and see how much you owe. When you add back your unemployment, that will be the additional tax.

[holmgren]

I seemed to have missed the tax paid to Wisconsin credit part of Turbo Tax, i just went back and filled it out.  It came down to 34 dollars.  I can handle that hah. 

Thank you for your help!!