Your residency status governs how income that you receive in Minnesota is taxed by the state. You can be a Minnesota resident, a part-year resident or a nonresident. Your status depends on two rules – “domicile” (permanent residency) and Minnesota’s “183-day rule.”
Under these rules:
- If you live in more than one state – such as spending the winter months in a warmer climate – you may still be considered a Minnesota resident for tax purposes.
- If you move into or out of Minnesota during the year, you’re considered a part-year resident. For details, see Part-Year Residents (Income Tax Fact Sheet 2).
- Even if you’re a resident of another state, some of your income may be taxable by Minnesota. For details, see Nonresidents (Income Tax Fact Sheet 3).
Domicile for Individual Income Tax
“Domicile” refers to your permanent legal address – the place you intend to make your home permanently or for an indefinite period of time.
For most Minnesota taxpayers, it’s easy to determine: you live, vote, work, attend school and occupy a home or apartment in Minnesota. But if you spend part of the year outside of Minnesota, domicile may be harder to define.
Note: If you’re a legal resident of Minnesota, it remains your state of residence until you take steps to establish a new residence elsewhere.
Your spouse is generally assumed to be a resident of the same state as you, except in the following situations:
- There is evidence to the contrary. (For example, if you moved to another state for work but your spouse remained in Minnesota to sell your house and to see your children through the rest of the school year.)
- You’re legally separated or divorced.
- You’re a member of the military.
Even if you live in another state, you’re considered a Minnesota resident for tax purposes if you meet both of the following conditions:
- You spend at least 183 days in Minnesota during the year (any part of a day counts as a full day).
- You or your spouse own, rent or live in a Minnesota residence with its own cooking and bathing facilities.
If both conditions apply, you must file a Minnesota income tax return. If the second condition applied for the entire year, file Form M1, Individual Income Tax. If the second condition applied for only part of the year, file Form M1 and Schedule M1NR, Nonresident/Part-Year Residents.
Example: Linc is temporarily assigned to work in Minnesota by his employer in California. He rents an apartment for eight months and spends the entire time in Minneapolis. Since Linc spent more than 183 days here and rented an apartment during that time, he’s considered a part-year resident and must file a Minnesota return using Form M1 and Schedule M1NR.
Exceptions to the 183-Day Rule
The 183-day rule does not apply in some cases. These exceptions include: