State tax help

Forum|Forum|5 years ago
May 16, 2021
1 reply
5 views

I live in a state that is not the state I earn income in. I am a 1099 contractor, but my husband is paid by w-2 (earned in the state we live in). When I pull the info in to file taxes in the state I earned the income, it shows about double what I expected based on tax brackets ($3454 for $43k). Why is the tax due so much higher?

Not A Product Question

DanielV01

Level 15

What is the state involved?

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mickey1783Author

Level 2

I live in MN but made money in NM

DanielV01

Level 15

Two things: Minnesota requires you to use the same filing status as your Federal return (as a Minnesota resident) and also taxes all of your income. Since you also must pay tax on the income you earned in New Mexico to New Mexico, Minnesota will give you a credit for the tax you pay to New Mexico on that income. But that credit is limited to the amount that Minnesota will tax the same income.

We don't have access to your return or account to know exactly what you are seeing, but hopefully this gives some context. You can certainly provide additional details with hypothetical numbers/information to provide you a more detailed response as well.

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