NonResident Aliens Filing a Minnesota Return Minnesota Residency

Non-Resident Aliens Filing a Minnesota Return

Minnesota Residency for tax purposes n 183 day rule - in Minnesota – must establish a tax home - visa’s are a temporary status • any day or part of a day qualifies as a counted day in MN – rent or occupy an abode : self contained living unit, suitable for year -round use, equipped with own cooking and bathing facilities

Filing a Minnesota return n n n Filing federal Form 8843 – nothing for MN Required to file a federal return then required to file a MN return Start with federal taxable income – 1040 NR - line 40 – 1040 NR-EZ - line 14 Itemize on federal- must add back all state income tax on line 2 - do not use schedule in booklet Minnesota adopted additional standard deduction for MFJ - no longer an add back (Only applies to students from India) May qualify for other additions and subtractions – Except for charitable contributions (subtraction now on schedule M 1 M) Minnesota requires a copy of the federal enclosed

Filing status same as federal A. line 3 (EZ) or line 8 (NR long) B. - C. most likely blank D. FAGI line 10 (EZ) line 35 (NR long) Line 1 - FTI line 14 (EZ) line 40 (NR long) Line 2 - State Tax line 11 (EZ) line 3 Schedule A Line 5 State tax refund line 11 of 1040 NR

Line 26 M 1 W show MN withholding only Line 28 M 1 CD Line 30 K-12 Ed Credit Refund or payment due

Filling out the M 1 W - W-2 1042 S n Box 15 - MN ID…………. . . n Box 23 n Box 16 - State Wages……. . . n Box 2 Gross n Box 17 - MN Withholding. . . n Box 22 n Box 24 - name of state Only need to fill in this form if there is state taxes withheld…. . usually no state tax on 1042 S

Minnesota Credits n n n MFS cannot claim credits Must be single or married filing jointly Single with qualifying child (see pub. 17) Must qualify for the federal credits Must have Minnesota assignable income

Minnesota credits, cont. n Child and dependent care credit - M 1 CD n K-12 Education credit – M 1 ED - paid qualifying expenses for 2006 - household income limit and maximum credit are now based on number of qualifying children in K-12 for 2006 (See page 17 of M 1 instruction booklet for more information) n Marriage credit - MFJ

Filing MN as part year resident Schedule M 1 NR n n Non-resident/Part year resident form - do not use if only Minnesota source income Must have received income while residing in another state

Property Tax Return n n n Must be a Minnesota resident - 183 day rule Dependents are not eligible (50% Rule) Must be self supporting Must live in a unit which is considered an “abode” - cooking and bathing facilities Property taxes paid on unit Filing status is not an issue - living situation

Student living situations For the property tax refund- must pay property taxes on unit - may not receive a CRP if nonprofit organization n Dormitory – separate cooking facility – bathing facility per unit n Student housing n Living off campus

Household income n Line 1 - federal adjusted gross income – 1040 NR-EZ line 10 – 1040 NR line 35 n Line 5 - must include income from all sources taxable and non-taxable income included - write non-resident alien in box and also income type – scholarships and fellowships – income excluded by a tax treaty – tuition paid by the University for the Ph. D student in exchange for TA duty – Interest See page 9 of Property Tax Booklet

Property Tax Return cont. n Line 7 - Subtraction for dependents – See federal definition for qualifying child. (To determine amount see worksheet on page 10 of M 1 PR instruction booklet). n Only Mexico and Canada can use for PR purposes if able to claim dependents on the 1040 NR.

Property Tax for Renters n If two unmarried adults in a unit, CRP is split equally and apply for refund separately n If income is less than the rent paid, enclose an explanation of the source of funds used to pay the rent

SS# or ITIN x Capital letters. Name/address Living Status Federal adjusted gross income Additional Non-Taxable income Line 5 page 9 - M 1 PR

Signature on bottom of return

For more information see Fact Sheet #16 Aliens at www. taxes. state. mn. us Questions? ?