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Non-Resident Aliens

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

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Non-Resident Aliens

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  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 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

  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 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 1042S Box 23 Box 2 Gross Box 22 Box 24 - name of state Filling out the M1W

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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.

  14. 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

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

  16. Signature on bottom of return

  17. For more information seeFact Sheet #16 Aliens at www.taxes.state.mn.usQuestions????

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