Calculating Minnesota Gross Income
As a part-year resident or nonresident, you must file a Minnesota income tax return if your Minnesota gross income meets or exceeds the minimum filing requirement ($13,825 for 2023).
To determine your Minnesota gross income:
Step 1:
Calculate your total income received while you were a Minnesota resident. Use your income from all sources, including income received outside of Minnesota.
Step 2:
Calculate your total Minnesota income received while you were a nonresident. This includes:
- Wages, salaries, fees, commissions, tips, and 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.
- Gross winnings from gambling 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. For a 2023 partnership or S corporation, this is the amount entered on line 36 of Schedule KPI, Partner’s Share of Income, Credits and Modifications, or line 36 of Schedule KS, Shareholder’s Share of Income, Credits and Modifications.
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), file a Minnesota return using Form M1, Individual Income Tax, and Schedule M1NR, Nonresident/Part-Year Residents.
If the amount is less than the minimum filing requirement, you should file a Minnesota return to claim a refund if you:
- Had Minnesota income tax withheld
- Made Minnesota estimated tax payments
- Qualify for certain Minnesota refundable credits
