Moving from Florida to Minnesota

[coldcase]

I moved from Florida to Minnesota exactly halfway through the year. When I'm filling out my state return, it's using the state standard deduction against my TOTAL income for the year, not just what I earned in the state (which is a little less than half of my total income). Therefore my state refund is much less than what I was anticipating. Is this correct? 

[Critter-3]

It is correct ... the standard deduction is not prorated. 

[SteamTrain · Accepted solution]

Yeah, but did you go thru the entire MN part-Year Q&A.

You are probably misinterpreting how it is supposed to proceed

MN, like a lot of states do it similarly. 

1)  First they use your entire years income...with full Std or itemized deductions...to calculate your taxable income based on all year.

2)  Then they use the part-year forms to either

....2a) ratio down either the taxable income, before calculating the tax...or

....2b)  calculate a total tax, then ratio it down just the tax.

3) you need to make sure you've done all the income allocations during the MN Q&A....assigning just your MN income  to MN....then the software deals with it properly...and the tax on line 13 should be lower than if you had been a full year MN resident.

also, You do need to make sure you are using the MN Part-Year tax return  (Indicated you moved to MN form FL in the Personal Info section)....before you go thru the MN Q&A....which fills out the MN Schedule M1NR which does the enumeration of income allocations for part-year residents.