Received estate money from CO. I live in MN and now MN gets to tax this money also? What gives?

[KrisD15]

To clarify, are you referring to income you received from a Trust? 

Did you get a K-1?

Or are you asking about money you inherited from an estate? 

How was the money reported to you? 

[RAJensen]

Yes, it is from an estate and I received a Schedule K1. Reported this on federal return, then filled out CO state return for the amount of the K1. I then filled out a MN return and it gave me credit for the CO tax but then taxed me again plus $9.00 in late fees.

[RobertB4444]

Minnesota taxes everything that you earn as a Minnesota resident.  

So you paid taxes on the money to Colorado.  Then, Minnesota looks at the same money, charges you tax on it and gives you a credit for what you paid Colorado.  

If Minnesota's tax rate is higher than Colorado's then they get to charge you the higher rate and deduct Colorado's lower rate, which is what they did.

@RAJensen 

[RAJensen]

Well that is just not right that you are taxed on the same money twice. Maybe this is why MN has a 17 billion dollar surplus and they want more.

[RAJensen]

This was income from a trust and yes I received a schedule K1.