Part-Year Residents

You’re considered a part-year resident of Minnesota if either of these apply:

• Domicile: You moved to or from Minnesota during the tax year and established residency.
• The 183-day rule: You spent at least 183 days in Minnesota and you rent, own, maintain, or occupy an abode (a residence in Minnesota suitable for year-round use and equipped with its own cooking and bathing facilities). In this case, you are considered a Minnesota resident for income tax purposes for the length of time you maintained an abode in Minnesota, even if your permanent residence was in another state for the full year.

The 183-day rule does not apply in these situations:

• Members of the military (or their spouses) who are stationed in Minnesota but are permanent residents of other states
• Residents of Michigan and North Dakota (these states have tax reciprocity agreements with Minnesota)

You are required to file a Minnesota income tax return if your Minnesota gross income meets the minimum filing requirement ($13,825 for 2023). File electronically, or use Form M1, Individual Income Tax, and Schedule M1NR, Nonresidents/Part-Year Residents, to file your return. For more information, see Fact Sheet 12, Filing Past Due Returns.

If your Minnesota gross income is less than the requirement, you should file a Minnesota return to claim a refund if any of these apply:

• You had Minnesota tax withheld
• You made estimated tax payments to Minnesota
• You qualify for refundable credits

Follow the steps below to determine your Minnesota gross income:

Step 1:
Calculate the total income received while you were a Minnesota resident. Include income from all sources, as well as income received outside of Minnesota.

Step 2:
Calculate the total Minnesota income you received while you were a nonresident. This includes:

• Wages, salaries, fees, commissions, tips, and bonuses for work done in Minnesota
• Gross winnings from gambling 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

Note: For 2023, a partnership will find this amount on line 36 of Schedule KPI and an S corporation will find the amount on line 36 of Schedule KS.

Step 3:
Combine the totals from steps 1 and 2. If this amount meets the minimum filing requirement for the year ($13,825 for 2023), you must file a Minnesota return using Form M1 and Schedule M1NR.

For the portion of the year you are a Minnesota resident, you are taxed on income you receive inside and outside of Minnesota. When you live in Minnesota but work in another state, Minnesota taxes your out-of-state income.

If another state taxes the same income that Minnesota taxes, you may qualify for a credit on taxes paid to the other state. For details on this credit, see Taxes Paid to Another State Credit. If you are a Minnesota resident who paid Wisconsin tax on the same income that Minnesota taxed, see Schedule M1RCR, Credit for Tax Paid to Wisconsin. For the portion of the year you were a nonresident, you must pay tax on income derived from Minnesota sources, including wages earned for work performed in Minnesota.

Your Minnesota filing status must be the same as your federal filing status. If you are filing a joint return and only one spouse has income that is taxable to Minnesota, you must file a joint Form M1 and Schedule M1NR.

Enter your joint taxable income from the federal return on line 1 of your Form M1; do not modify the amount. Your income will be apportioned when you complete Schedule M1NR.

Part-year residents may qualify for Minnesota credits. For general information on available credits, see the instructions for Form M1. Some credits may be adjusted based on your percentage of income taxable to Minnesota. To find out if a credit needs to be adjusted, see the instructions for each credit.

If you did not have Minnesota tax withheld from your income and you expect to owe more than $500 of Minnesota tax, you may be required to pay quarterly estimated tax.

For details, see Estimated Tax.

As a part-year resident, you may be eligible for a homeowner’s or renter’s refund if you meet the requirements. For details, see the instructions for Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund.

Homeowners: File using your household income for the entire year, including the income you received before moving to Minnesota.

Renters: File using your household income for the period you lived in Minnesota. If you were married, include your spouse’s income for the period you lived in Minnesota. Enclose a note explaining how income was determined