Problem with Minnesota Part Year Resident tax return

I completed the step by step for Minnesota part year resident. In the narrative it says that if you didn't have more than $12,200 in Minnesota income then you would not owe tax but the form is calculated to show a tax. It took the federal number and subtracted $12,200 and came up with taxable income that I was taxed on. The Federal income is all income from Colorado except for a small amount of interest and dividends (about $300). Per the instructions in Step-by-Step I should not have paid tax since I had less than $12,200 in Minnesota income. Is this a glitch in the program?

186

Expert Alumni

Feb 14, 2020 2:59:56 PM

No, you do not have to pay tax on the Colorado income, but Minnesota uses the total income as the threshold ($12,200) to determine if you must file then applies the rate ONLY to the Minnesota income.

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Problem with Minnesota Part Year Resident tax return