M1NR for Non MN resident and MN resident marriage

[Peter-X]

My spouse is a CA resident and I am a MN resident. If we want to MFJ for Fed, CA and MN, is that doable in TurboTax? When I try to fill in the order of Fed--> CA--> MN in TurboTax, it takes both of us as MN resident for granted, doesn't generate M1NR form and take all of income as MN based. We have two W2 and some div and int and some stock loss. I need to pay some CA tax because I was working remotely in CA for a while last year. 

MFJ is an easier and economical way for me than MFS.   

Thanks!

[RobertB4444]

If you are filing jointly then you should file as joint residents of one state and part year residents of the other so that your residency is joint as well.  Otherwise you should file joint federally and separate on the state returns.  

If you are continuing to file as joint you will need to go through each return and exclude the spouse's income from taxation item by item.  Otherwise the states both think that they are entitled to tax both of you.

@Peter-X 

[Peter-X]

Thanks, Robert. MN and CA both require state and fed status to be same. So I can be either MFJ for all or MFS for all. 

Do you know a place in TurboTax to exclude items of my spouse’s? I know M1NR has the place, col a and b. But it is back to my original post. How to direct me m1NR in TurboTax? At the beginning of filing of case, I explicitly say my residence is MN and my spouse is CA in personal information session.

@RobertB4444 

[JamesG1]

i am able to report one spouse as a MN resident and one spouse as a CA resident.  See MN M1NR here.

I reported MN as a part-year resident tax return.

• Report the state of residence for taxpayer and spouse at My Info down the left side of the screen.
• Click Edit to the right of the name of the taxpayer and spouse.

@Peter-X 

[Peter-X]

Thanks, James!

"I reported MN as a part-year resident tax return.

• Report the state of residence for taxpayer and spouse at My Info down the left side of the screen.
• Click Edit to the right of the name of the taxpayer and spouse."Are you talking about TurboTax or other product? 

What I see in TurboTax is 

Personal info --> You and your family --> continue -->

Your personal info summary

----------------------------------------------------------------------

My name                                                       Edit

....                    

state of residence: MN 

--> Edit

--> **'s info 

I can switch my state of residence from MN to other state in drop down menu. Can you help me to figure out what is the next step to switch full time MN resident to part time MN resident? 

Thanks! 

@JamesG1 

[TeresaM]

The selection for Resident or Part Year Resident will happen within the Minnesota return. 

Look for the screen below, near the beginning of the Minnesota return. It will offer a resident status and ask if that is correct. If it is not Part Year Resident, please click the Change Residency Status button and the following screen will appear, allowing you to select which residency form is correct. 

[Peter-X]

I worked in CA for months for my MN work. Let us assume, my W2 is 60k in total and I worked in CA for 3 months. What method is I should take for my MN portion more suitable for the tax law: 

1) put 60K in B1 and then in other state tax credit summary to claim the credit? 

2) put 45K in B1(60/12*(12-3)) and then skip other state tax credit screen? 

Thanks a lot! 

@JamesG1 

[RobertB4444]

If you are a Minnesota resident (as you are) then the appropriate amount to put in is the full 60K you earned and take the tax credit for whatever you pay to California against that.

California's tax rate being what it is that probably works out best for you anyway.

@Peter-X 

[Peter-X]

Put part-year resident from 01/01/2022 to 12/31/2022

Get an error message from TurboTax

TP part-year start date or end date is not valid for electronic filling - the date range of your residency should be less than one year. 

Does that matter? 

Thanks! 

@JamesG1 

[Cynthiad66]

Yes the part year must be less than a full year otherwise it is a Full Year Resident.

@Peter-X

[Peter-X]

Thanks for your reply. 

Technically I agree with you. But the question will be back to the one at the very beginning: If I choose full year, TurboTax could not trigger the M1NR form and then take both my W2 in MN and my spouse's in CA for tax. James recommends me to change it to part time. Thanks!  

@Cynthiad66 @JamesG1  

[AmyC]

The goal is to accurately report your income and pay taxes. The only option for you seems to be part year so you can accurately exclude the income.

If you are audited, you want the income and taxes to be right rather than a day of residency missing. Change the residency date and make the program happy for part year.

[Peter-X]

Thanks!

It stops at the last step of efile. I used your method and it passes. Hope it is not an issue.