The Minnesota income tax return begins with federal taxable income. You must complete your federal return before your Minnesota return. Your Minnesota filing status must be the same as your federal filing status. See the instructions for Form M1, Individual Income Tax, to complete your Minnesota income tax return.
Note: If you received a federal Form 1042-S showing Minnesota income tax was withheld, report the information on line 2 of Schedule M1W, Minnesota Income Tax Withheld.
Nonresident Aliens
Nonresident aliens are taxed differently than resident aliens and are not eligible for certain state tax deductions and credits. Some of the key differences include:
Filing Status
If you used any of the “married” filing statuses on your federal income tax return, you must use the “Married Filing Separately” filing status on your Minnesota income tax return. This requirement applies even if you are allowed to claim an exemption for your spouse.
Itemized Deductions
Generally, you may only claim qualified itemized deductions on your Minnesota return. You are not allowed the standard deduction unless it is provided in a tax treaty between your home country and the U.S.
State Tax Deduction
You must add the state tax deduction back to Minnesota taxable income on your Minnesota income tax return. Use the amount of state income tax from Schedule A of federal Form 1040NR, Nonresident Alien Income Tax Return.
Credits
Nonresident aliens do not qualify for the Minnesota Working Family Credit. Married nonresident aliens do not qualify for the Minnesota Marriage Credit, Child and Dependent Care Credit, or K-12 Education Credit because they must file separate Minnesota returns.
Filing Requirement
If you are considered a nonresident alien for federal tax purposes, and have gross income of at least $5 assignable to Minnesota, you must file Form M1 and Schedule M1NR.