Non-Resident Aliens

Filing a Minnesota Return

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

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

Filing status same as federal

A. line 3 (EZ) orline 8 (NR long)B. - C. most likelyblankD. FAGI - line 10 (EZ)line 35 (NR long)

Line 1- FTIline 14 (EZ)line 40 (NR long)

Line 2 - State Taxline 11 (EZ)line 3 Schedule A

Line 5 State tax refund line 11 of 1040NR

Line 26 M1W show MN withholdingonly

Line 28 M1CDLine 30 K-12 EdCredit

Refund orpayment due

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

Filling out the M1W1042S Box 23 Box 2 Gross Box 22 Box 24 - name

of state

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

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

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

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

Student living situationsFor 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

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

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.

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

Capital letters-Name/address

Living Status

x

AdditionalNon-Taxable income Line 5page 9 - M1PR

Federal adjustedgross income

SS# or ITIN

Signature on bottom of return

For more information seeFact Sheet #16 Aliens at www.taxes.state.mn.us

Questions????