If I am a nonresident of Minnesota, but I did contract work for a small business located in Minnesota (made less than $2k), do I have to file in MN?

[MichaelL1 · Accepted solution]

No, you do not have to file a return for MN as you are under the MN minimum filing requirements for income for MN.

See link below for more detail.

http://www.revenue.state.mn.us/individuals/individ_income/Pages/Who_Must_File_a_Minnesota_Individual...

[llcbean]

Thank you, @TurboTaxMichaelL1! Very helpful.

[collwalsh]

What if I paid several hundred dollars in state income tax to both Minnesota, and to North Carolina, both as a NON RESIDENT.  (my employer is an accounting firm so they send me W2's for each state I temporarily work in).   Do I need to file a return to each non resident state to get a refund?  Or do I show these out-of-state taxes as credits on my HOME state return?  Disappointed that TurboTax isn't helpful at all in these situations.

[Irene2805]

In order to get a refund of taxes withheld you have to file a nonresident return for both Minnesota and North Carolina.  Keep in mind that you may owe state taxes on the income because both states tax income sourced in their state that are above their standard deduction.  However, TurboTax will calculate that for you.

@collwalsh

[collwalsh]

Actually I am far BELOW the standard deduction for both states.  (only made a few thousand for each state) Should I still be liable for taxes?    

[AmyC]

You must file NC and not required to file MN. You would have no MN liability while you would have a NC tax liability.

For NC, you must file a tax return. From NC Part-year residents and nonresidents.

Part-year residents and nonresidents must file a North Carolina return if they:

• Received income while a North Carolina resident, or

• Received income while a nonresident that was attributable to the ownership of any interest in real or tangible personal property in North Carolina, derived from a business, trade, profession, or occupation carried on in North Carolina, or derived from gambling activities in North Carolina, and total gross income from all sources exceeds the amount shown above for residents.

North Carolina income tax. To calculate North Carolina income tax, multiply North Carolina taxable income by 5.25%. The state will prorate your NC income and divide it by federal income to get the taxable percentage of income.

You would have no MN liability. You do not need to file unless you want a refund.

From MN: Part-year and nonresidents.

Individuals must file Form M1 and Schedule M1NR if the following income is at least $12,400.

• Total income from all sources while a Minnesota resident, plus

• Total of the following types of income received while a nonresident.

– Wages, salaries, fees, commissions, tips, and bonuses for work done in Minnesota

.– Gross rents or royalties received from properties located in Minnesota.

– and more

@collwalsh

[collwalsh]

Thank you!  Now it all makes sense!