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Last Updated: 2/15/2018

Credit for Tax Paid to Wisconsin

Minnesota residents pay state tax on income earned inside and outside of Minnesota. Beginning in tax year 2017, you may qualify for a credit if you paid income tax to both Minnesota and Wisconsin on the same income.
 

Do I qualify for the credit?

You may qualify for the Credit for Tax Paid to Wisconsin if all of the following apply:

  • You were domiciled in Minnesota for all or part of 2017.
  • You paid income tax to Minnesota and Wisconsin on the same income.
  • You were a Minnesota resident when you received the income taxed by both states.
  • You filed a tax return with Wisconsin.
You may only claim this credit for taxes paid to the state of Wisconsin. If you paid income tax to Minnesota and a state other than Wisconsin on the same income, see Credit for Taxes Paid to Another State.
 

How much is the credit?

The amount of the credit depends on the difference between your taxes paid to Wisconsin and to Minnesota on the same income. The credit may include a nonrefundable and a refundable amount.
 
Your eligibility for the refundable credit depends on your amount of personal service income taxed by Wisconsin while a Minnesota resident. Personal service income includes wages, salaries, tips, commissions, fees, and bonuses. If you do not receive the refundable credit, you may still receive the nonrefundable credit.
 

How do I claim the credit?

Complete Schedule M1RCR, Credit for Tax Paid to Wisconsin, to determine your credit.
 
Note: For tax years 2016 and earlier, you must complete Schedule M1CR, Credit for Income Tax Paid to Another State, to claim a credit for tax paid to Wisconsin.