Even if you live in another state, you are considered a Minnesota resident for income tax purposes if you meet the following conditions:
- you spend at least 183 days in Minnesota (any portion of a day is counted as a full day), and
- you (or your spouse) own, rent or occupy a residence in Minnesota with its own cooking and bathing facilities.
If both conditions apply, you are considered a part-year Minnesota resident. You must complete both Form M1, Individual Income Tax Return, and Schedule M1NR, Nonresidents/Part-year Residents.
There are some exceptions where the 183-day rule does not apply, including:
If you lived in the residence for the entire year, you are considered a full-time Minnesota resident and will not need to use Schedule M1NR.
Example: Linc is temporarily assigned to work in Minnesota by his employer in California. Linc rents an apartment for eight months and spends the entire time in Minneapolis.
Even though Linc has not permanently moved to Minnesota, he is considered a part-year resident because he was in the state for more than 183 days and rented an apartment during that time. He must file Form M1 and Schedule M1NR to calculate his Minnesota income as a percentage of his total income.