W2's from two different states

[RiverCitiesFan]

My son, who we still claim as a dependent, had two employers in 2022.  He is still a legal resident of Minnesota, but attends college in North Dakota.  His summer job withheld MN taxes, but his job at college withheld ND taxes.  How do we file his taxes?  Do we fill out both MN and ND tax forms?

[ErnieS0 · Accepted solution]

File a resident Minnesota income tax return and report all your son’s income from both states. 

You son is a full-year resident of MN, even if he attends college in ND. Attending college is considered a temporary absence and not a change of residency.

Minnesota and North Dakota has reciprocity, meaning his ND employer should have withheld MN tax.

Because your son’s employer took out ND tax, you’ll have to file a non-resident ND return it get it back.

On your North Dakota nonresident return, change your son's wages to $0, print out the form and follow these steps from ND:

If you received wages covered by reciprocity, and your employer withheld North Dakota income tax of $5.00 or more from them, you must file a North Dakota individual income tax return at the end of the tax year to obtain a refund of the amount withheld.

If this applies to you and you do not have any other gross income from North Dakota sources, complete Form ND-1 as follows:

1. Complete the applicable items at the top of Form ND-1, page 1 (through line E), as instructed.
2. For item F, fill in the circle next to “MN/MT RECIPROCITY” at the top of Form ND-1, page 1. Also enter “MN” or “MT”, whichever applies, in the space under “State.”
3. Leave lines 1 through 25 blank.
4. Fill in the amount of the North Dakota income tax withheld on lines 26, 28, 29, and 32.
5. File Form ND-1 with a copy of your federal return and Form W-2s showing North Dakota income tax withholding.

Have your son complete Form NDW-R and give it to his employer.