Non-Resident Aliens. Filing a Minnesota Return

Transcription

1 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

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 NR-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

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 Filling out the M1W M1W - W-2 Box 15 - MN ID... Box 16 - State Wages... Box 17 - MN Withholding S Box 23 Box 2 Gross Box 22 Box 24 - name of state Only need to fill in this form if there is state taxes withheld..usually no state tax on 1042S

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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 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 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

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

13 Household income Line 1 - federal adjusted gross income 1040NR-EZ line NR 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

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.

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

17 Signature on bottom of return

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