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Category: Minnesota

Minnesota Credit for Taxes Paid to Another State

If you were a resident for all or part of 2016 and you paid income tax both to Minnesota and to another state on the same income, you may be able to reduce your tax. A Canadian province or territory and the District of Columbia are considered a state for purposes of this credit.


If you were a resident of another state but are required to file a 2016 Minnesota income tax return as a Minnesota resident, you may be eligible for this credit. To be eligible, you must have paid 2016 state tax on the same income to both Minnesota and the state of which you were a resident. You must get a statement from the other state's tax department stating ineligibility to receive a credit on that state's return to receive a credit on that state's return for income tax paid to Minnesota.


If you claimed a federal foreign tax credit and you included taxes paid to a Canadian province or territory, you cannot use these same taxes paid to determine your Minnesota credit.


Note: TaxSlayer will automatically calculate your credit for taxes paid to another for your Resident Minnesota return when you add a Nonresident return to your account. If you are preparing a Part-Year Resident Minnesota return, you will be required to manually enter the information asked of you within your TaxSlayer account.