non-resident aliens filing a minnesota return. minnesota residency for tax purposes n 183 day rule -...
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Non-Resident Aliens
Filing a Minnesota Return
Minnesota Residency for tax purposes 183 day rule - in Minnesota
– must establish a tax home - visa’s are a temporary status• any day or part of a day qualifies as
a counted day in MN– rent or occupy an abode : self
contained living unit, suitable for year-round use, equipped with own cooking and bathing facilities
Filing a Minnesota return Filing federal Form 8843 – nothing for MN Required to file a federal return then required to file a MN
return Start with federal taxable income
– 1040NR - line 40– 1040NR-EZ - line 14
Itemize on federal- must add back all state income tax on line 2 - do not use schedule in booklet
Minnesota adopted additional standard deduction for MFJ - no longer an add back (Only applies to students from India)
May qualify for other additions and subtractions– Except for charitable contributions (subtraction now on
schedule M1M) Minnesota requires a copy of the federal enclosed
Filing status same as federal
A. line 3 (EZ) orline 8 (NR long)B. - C. most likelyblankD. FAGI - line 10 (EZ)line 35 (NR long)
Line 1- FTIline 14 (EZ)line 40 (NR long)
Line 2 - State Taxline 11 (EZ)line 3 Schedule A
Line 5 State tax refund line 11 of 1040NR
Line 26 M1W show MN withholdingonly
Line 28 M1CDLine 30 K-12 EdCredit
Refund orpayment due
M1W - W-2 Box 15 - MN ID…………... Box 16 - State Wages……... Box 17 - MN Withholding...
Only need to fill in this form if there is state taxes withheld…..usually no state tax on 1042S
Filling out the M1W1042S Box 23 Box 2 Gross Box 22 Box 24 - name
of state
Minnesota Credits MFS cannot claim credits Must be single or married filing jointly Single with qualifying child (see pub. 17) Must qualify for the federal credits Must have Minnesota assignable income
Minnesota credits, cont.
Child and dependent care credit - M1CD
K-12 Education credit – M1ED - paid qualifying expenses for 2006
- household income limit and maximum credit are now based on number of qualifying children in K-12 for 2006 (See page 17 of M1 instruction booklet for more information)
Marriage credit - MFJ
Filing MN as part year resident Schedule M1NR Non-resident/Part year resident
form - do not use if only Minnesota source income
Must have received income while residing in another state
Property Tax Return
Must be a Minnesota resident
- 183 day rule - Dependents are not eligible (50% Rule) Must be self supporting Must live in a unit which is considered an
“abode” - cooking and bathing facilities Property taxes paid on unit Filing status is not an issue - living situation
Student living situationsFor the property tax refund- must pay property taxes on unit - may not receive a
CRP if non-profit organization Dormitory
– separate cooking facility– bathing facility per unit
Student housing Living off campus
Household income
Line 1 - federal adjusted gross income– 1040NR-EZ line 10– 1040NR line 35
Line 5 - must include income from all sources - taxable and non-taxable income included - write non-resident alien in box and also income type– scholarships and fellowships– income excluded by a tax treaty– tuition paid by the University for the PhD student in
exchange for TA duty– Interest
See page 9 of Property Tax Booklet
Property Tax Return cont.
Line 7 - Subtraction for dependents – See federal definition for qualifying child.(To determine amount see worksheet on page 10 of M1PR instruction booklet).
Only Mexico and Canada can use for PR purposes if able to claim dependents on the 1040 NR.
Property Tax for Renters
If two unmarried adults in a unit, CRP is split equally and apply for refund separately
If income is less than the rent paid, enclose an explanation of the source of funds used to pay the rent
Capital letters-Name/address
Living Status
x
AdditionalNon-Taxable income Line 5page 9 - M1PR
Federal adjustedgross income
SS# or ITIN
Signature on bottom of return
For more information seeFact Sheet #16 Aliens at www.taxes.state.mn.us
Questions????