taxes from g2

[jody b]

I have about 4,000 on W2 form from SD.  how do I decide how much taxes I pay from it to the state of MN and to the Irs

[xmasbaby0]

You complete a federal tax return to see whether you owe the IRS or are getting a refund.   Was that income the only income you received in 2023?   Or did you have other income as well?   As for the states---South Dakota has no state income tax.  You have not told us which state you lived in and/or worked in.   Why are you mentioning both SD and MN?

[Opus 17]

Do you mean W-2G?  Did you win money in SD at a casino or state lottery?

You first prepare a federal tax return (IRS) listing all your world-wide income, no matter how small, and calculate and pay the taxes you owe.

Then, since you have income outside your home state, you prepare a South Dakota non-resident tax return.  Report only the income that was earned or paid in SD.   You may have to manually allocate your items of income (i.e. 100% of the W-2G and zero percent of your wages, pensions, or any other income.)  Depending on the laws of SD and your income, you may or may not owe tax to SD.

Then lastly, prepare a resident return for your home state that lists all your world-wide income.  Your home state will give you a credit for taxes you paid to SD, which reduces the effect of double-taxation on the gambling winnings.