Important! Individual income tax reciprocity between the states of Minnesota and Wisconsin ends January 1, 2010.Reciprocity agreementsReciprocity refers to agreements between Minnesota and the states of Wisconsin (prior to tax year 2010), Michigan, and North Dakota. The agreements simplify income tax filing for taxpayers who live in one state and work in another.If you were a full-year resident of Michigan or North Dakota who returned to your home state at least once a month, or were a full-year Wisconsin resident (prior to tax year 2010), and your only Minnesota income was from personal services (wages, salaries, tips, commissions, bonuses), you are NOT subject to Minnesota income tax.For example, if you're a resident of Michigan who works in Minnesota, you'll pay tax on your wages only to Michigan, your home state.For types of income that do not qualify for reciprocity see Fact Sheet #4, Reciprocity.Minnesota tax withheldIf Minnesota income tax was withheld from your wages and you want to claim a refund, you must file Form M1, Schedule M1M and complete Schedule M1W (withholding information) using the following instructions:- Enter the appropriate amounts from your federal return on lines A through D and line 1 of Form M1.
- Skip lines 2 through 7 of Form M1.
- Enter the amount from line 1 of Form M1 on line 22 of Schedule M1M and on line 8 of Form M1. Be sure to check the box on line 22 of Schedule M1M to indicate the state of which you are a resident.
Note. If Form M1, line 1, is a negative number, the M1M should be left blank. In most situations, this indicates that you should not file, since there will be no income taxable by Minnesota. If there is no taxable income on line 4 of your Minnesota Form M1, you do not have to claim reciprocity.
- Complete the rest of Form M1 to calculate the refund.
You must include your Schedule M1W, Form MWR, (Reciprocity Exemption/Affidavit of Residency) and a completed copy of your home state tax return. Do not complete Schedule M1NR.If your gross income assignable to Minnesota from sources other than from the performance of personal services covered under reciprocity for 2009 is $9,350 or more, you are subject to Minnesota tax on that income. You must file Form M1 and Schedule M1NR. You are not eligible to take the reciprocity subtraction on Schedule M1M.If you move to MinnesotaIf you are a resident of a reciprocity state and you moved to Minnesota, file using Schedule M1NR to apportion your income between the two states. Do not complete the subtraction line for reciprocity income on Form M1.
