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Last Updated: 12/23/2014

Filing Requirements and Calculating Minnesota Gross Income

If you’re a part-year resident or a nonresident, you must file a Minnesota income tax return if your “Minnesota gross income” meets the annual filing requirement ($10,150 for 2014).

To determine your Minnesota gross income:

Step 1:

Calculate the total income received while you were a Minnesota resident. Include income from all sources, including those outside Minnesota.

Step 2:

Calculate the total Minnesota income you received while you were a nonresident. This includes:
  • Wages, salaries, fees, commissions, tips or bonuses for work done in Minnesota
  • Gross rents and royalties from Minnesota property
  • Gains from the sale of land or other tangible property in Minnesota
  • Gains from the sale of a partnership interest that had property or sales in Minnesota
  • Gains on the sale of goodwill or income from a “non-compete” agreement connected with a business operating in Minnesota
  • Minnesota gross income from a  business or profession conducted partly or entirely in Minnesota. Gross income is income before subtracting any deductions or expenses. For a partnership or S corporation for 2014, this is the amount entered on line 21 of Schedule KPI or line 21 of Schedule KS.)
  • Gross winnings from gambling in Minnesota.

Step 3:

Combine the totals from steps 1 and 2. If this amount meets the minimum filing requirement for the year ($10,150 for 2014), you must file a Minnesota return using Form M1, Individual Income Tax, and Schedule M1NR, Nonresident/Part-Year Residents.

Note: Even if not required, you should file a Minnesota return to claim a refund if you had any Minnesota withholding or estimated tax payments. Follow the steps under “Who must file” in the Schedule M1NR instructions.