Question

M1NR form addition to turbotax to only pay tax in MN while a resident of MN

Forum|Forum|1 year ago
March 4, 2025
1 reply
0 views

For the past tax year, I was a resident of 2 states, one of which was MN. In Turbotax, the portion of the year that I was not a MN resident is being included in the state taxes for MN (therefore leading to a higher amount owed to MN than there should be). With this in mind, how can I ensure the M1NR is added correctly so that only income earned in MN while I was a resident of MN is taxed for MN? Of note, according to Taxes Paid to Another State Credit | Minnesota Department of Revenue "For the portion of the year you are a Minnesota resident, you are taxed on income you receive inside and outside of Minnesota. When you live in Minnesota but work in another state, Minnesota taxes your out-of-state income." (from this link at MInnesota Department of Revenue). Therefore, I should not be paying taxes on the portion of my income made in another state when I was a resident of another state. It appears there is a glitch in the TurboTax software or (more likely) there is another section I missed that allows for the addition of the M1NR form to ensure only income from my time as a Minnesota Resident is taxed for Minnesota.

Not A Product Question

K

KeshaH

If you've set your residency in Minnesota as part year resident, you should be able to allocate your income between Minnesota and non-Minnesota income. After going through the first several screens, you will get to a screen that says you're going to allocate income.

Note: If you lived in another state and worked in Minnesota, all of your income would still be taxable to Minnesota as Minnesota taxes nonresidents on Minnesota source income.

On the next several screens, you'll enter only the amount you earned form Minnesota sources in the second column.

G

gonzo1515Author

Hi Kesha,

Thanks for showing this as well! When I have filled in only the portions of my income that are MN based in these boxes, the taxes for MN still end up being on all of my income rather than only the MN specific portion of it. Any idea why that might be the case or other things I should try? Or if there is another place I can adjust what portions of my income is taxed by MN?

I really appreciate the help!

K

KeshaH

If you'd like, we can look at your return and see exactly what you see to help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

Click on Online in the top menu of TurboTax Desktop for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all other states, if any, that are included on the return.