turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

TurboTax incorrectly calculating partial residency income for State return

My wife and I moved from Nevada to Minnesota on 9/15. I began a new job in Minnesota on 7/25 (worked remotely to begin with). When working on our state return in TurboTax, the total income overview for the state is almost double what it should be. In the income allocations, we have allotted 40,703 and 4622 for myself and my spouse (these are the total amounts paid to me by my MN employer and the total my spouse made while living in MN - she's all 1099-NECs). I received no additional income apart from my MN employer while living in MN.

 

However, when I get taxes and credits summary, it lists our MN taxable income as 88,561. I can't figure out how this is the case. There are no combination of incomes that would equal that amount, and we don't have any other income or complicating factors. I've even gone through the MN Tax forms on my own and can't figure out how TT is getting this number (and likely overestimating my tax burden).

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
JohnW152
Expert Alumni

TurboTax incorrectly calculating partial residency income for State return

Part-year residents and nonresidents of Minnesota calculate their tax on taxable income from all sources, just like full-year residents do. 

 

However, Minnesota tax is then prorated.  The proration is based on the ratio of your modified Minnesota adjusted gross income (AGI) to your modified AGI from all sources.  So, your Minnesota tax will be based on your Minnesota AGI, not from you total AGI.

 

This proration is calculated on Minnesota Schedule M1NR, Nonresidents/Part-Year Residents, and the prorated tax amount is carried from line 32 of that form to line 13 of Form M1, Individual Income Tax

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies