Foreign Country Income Taxes
If you are a Minnesota resident, you may subtract any “subnational” (equivalent to a state) income taxes you paid to a foreign country from Minnesota taxable income for tax years 2018 and earlier.
You may qualify if you paid subnational income taxes to a foreign country.
You may not claim this subtraction if any of these apply:
- You used the taxes to claim a federal Foreign Tax Credit (federal Form 1116).
- You subtracted the foreign income on your federal return.
- You paid the taxes to Canada.
- You paid the taxes to a local government in a foreign country. The subtraction only applies to state taxes or their equivalent.
Note: If you paid income taxes to a Canadian province, you may qualify for a Minnesota credit. For details, go to Credit for Taxes Paid to Another State.