If you were a resident for all or part of the tax year and you paid income tax both to Minnesota and to another state on the same income, you may be able to reduce your tax.
The program will automatically calculate your credit for taxes paid to another state, for your Resident Minnesota return, when you add a Nonresident return to your account. If you are preparing a Part-Year Resident Minnesota return, you will be required to manually enter the information asked of you within your account.
Can I still claim the credit if I am a Minnesota nonresident?
If you were a resident of another state but are required to file a 2019 Minnesota income tax return as a Minnesota resident, you may be eligible for this credit. To be eligible, your income must have been taxed (and you paid the tax) in both Minnesota and the other state. You must get a statement from the other state's tax department stating ineligibility to receive a credit on that state's return to receive a credit on that state's return for income tax paid to Minnesota.
What if I paid foreign taxes?
If you claimed a federal foreign tax credit and you included taxes paid to a Canadian province or territory, you cannot use these same taxes paid to determine your Minnesota credit.
What if I live in a Reciprocal State?
Minnesota has reciprocity agreements with Michigan and North Dakota. If a Minnesota resident erroneously had income tax withheld for a reciprocal state on salaries and wages earned there, a nonresident return for the reciprocal state will need to be filed to get a refund of the taxes withheld.
For complete filing instructions for the Minnesota return and the reciprocal state, review our Article here.