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Non-Resident Aliens Filing a Minnesota Return. Minnesota Residency for tax purposes n 183 day rule - in Minnesota –must establish a tax home - visa’s.

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Presentation on theme: "Non-Resident Aliens Filing a Minnesota Return. Minnesota Residency for tax purposes n 183 day rule - in Minnesota –must establish a tax home - visa’s."— Presentation transcript:

1 Non-Resident Aliens Filing a Minnesota Return

2 Minnesota Residency for tax purposes n 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

3 Filing a Minnesota return n Filing federal Form 8843 – nothing for MN n Required to file a federal return then required to file a MN return n Start with federal taxable income –1040NR - line 40 –1040NR-EZ - line 14 n Itemize on federal- must add back all state income tax on line 2 - do not use schedule in booklet n Minnesota adopted additional standard deduction for MFJ - no longer an add back (Only applies to students from India) n May qualify for other additions and subtractions –Except for charitable contributions (subtraction now on schedule M1M) n Minnesota requires a copy of the federal enclosed

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) 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

6 M1W - W-2 n Box 15 - MN ID…………... n Box 16 - State Wages……... n 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 M1W 1042S n Box 23 n Box 2 Gross n Box 22 n Box 24 - name of state

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8 Minnesota Credits n MFS cannot claim credits n Must be single or married filing jointly n Single with qualifying child (see pub. 17) n Must qualify for the federal credits n Must have Minnesota assignable income

9 Minnesota credits, cont. n Child and dependent care credit - M1CD n K-12 Education credit – M1ED - paid qualifying expenses for 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) n Marriage credit - MFJ

10 Filing MN as part year resident Schedule M1NR n Non-resident/Part year resident form - do not use if only Minnesota source income n Must have received income while residing in another state

11 Property Tax Return n Must be a Minnesota resident day rule - n Dependents are not eligible (50% Rule) n Must be self supporting n Must live in a unit which is considered an “abode” - cooking and bathing facilities n Property taxes paid on unit n Filing status is not an issue - living situation

12 Student living situations For the property tax refund- must pay property taxes on unit - may not receive a CRP if non-profit organization n Dormitory –separate cooking facility –bathing facility per unit n Student housing n Living off campus

13 Household income n Line 1 - federal adjusted gross income –1040NR-EZ line 10 –1040NR line 35 n 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

14 Property Tax Return cont. n Line 7 - Subtraction for dependents – See federal definition for qualifying child. (To determine amount see worksheet on page 10 of M1PR instruction booklet). n Only Mexico and Canada can use for PR purposes if able to claim dependents on the 1040 NR.

15 Property Tax for Renters n If two unmarried adults in a unit, CRP is split equally and apply for refund separately n If income is less than the rent paid, enclose an explanation of the source of funds used to pay the rent

16 Capital letters- Name/address Living Status x Additional Non-Taxable income Line 5 page 9 - M1PR Federal adjusted gross income SS# or ITIN

17 Signature on bottom of return

18 For more information see Fact Sheet #16 Aliens at Questions????


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