1. Filing a Minnesota Return
Non-Resident Aliens
Filing a Minnesota Return

2. 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
Visa’s are for temporary stays, but for tax purposes, residency must be established. If here 183 days or more –state residence for the year. Also need to be here 183 days or more to qualify for PR.

3. 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
Non-resident aliens, who have been in MN for 183 days or more are considered residents. Full year residents are required to file a state return, if required to file the federal.
Not allowed standard deduction, so must itemize. Allowed a state tax deduction, but must add back the amount of state tax claimed.
No other specific provision for non-resident aliens, can qualify for other additions and subtractions. Except for Charitable because they itemize.

4. Filing status same as federal A. line 3 (EZ) or line 8 (NR long)
B. - C. most likely
blank
D. FAGI -
line 10 (EZ)
line 35 (NR long)
Line 1- FTI
line 14 (EZ)
line 40 (NR long)
Go over completing return: do not photo copy, capital letters, printing numbers, dark pen or pencil if not computer generated, whole dollar amts, if line does not pertain to tp leave blank, no symbols, extra notes, don’t staple or tape return.
If line 1 is negative, mark x in box.
Line 2 - State Tax
line 11 (EZ)
line 3 Schedule A
Line 5 State tax refund line 11 of 1040NR

5. Line 26 M1W show MN withholding only Line 28 M1CD Line 30 K-12 Ed
Credit
Refund or
payment due
1042 –S in place of W-2

6. Filling out the M1W 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
1042S
Box 23
Box 2 Gross
Box 22
Box 24 - name of state

7. 1042 –S in place of W-2

8. 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

9. 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

10. 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

11. 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
1)Cannot be considered someone else’s dependent by federal definition
2)Someone from home supporting them, or government agency assistance
On the PR filing status is not an issue, living situation, renter or homeowner.

12. Student living situations
For 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
Student housing – each unit sep. and pays RE taxes
Qualifying one – living off campus

13. 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
Other income on page 9 of PR booklet

14. 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.
Just to make note that you will have to pay attention to these special situations for the PR return, otherwise there is no subtraction for dependents.
Unique situations: Japanese, South Koreans, Mexicans, and Canadians are allowed dependent exemptions - Indian students with children who are residents or citizens - only Mexico and Canada can use for PR purposes.

15. 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

16. SS# or ITIN Capital letters- Name/address x Living Status
Federal adjusted
gross income
Additional
Non-Taxable
income Line 5
page 9 - M1PR
Other income not included in line 1 -
Line 5 – include interest, scholarships and grants, or other income excluded by treaty. If you enter an amount on line 5 make sure to identify the source.

17. Signature on bottom of return
STIN/site number in 9 boxes – don’t use IRS labels
Signature on bottom of return

18. For more information see Fact Sheet #16 Aliens at www.taxes.state.mn.us Questions????