Article: 50542
Overview
If you are a resident of Michigan or North Dakota and earned wages in Minnesota, you may be exempt from Minnesota income tax on those wages under a reciprocal agreement between the states. To report this exemption and prevent double taxation, you must complete the M1NR – Nonresidents/Part-Year Residents form and check the reciprocity box.
What is Reciprocity?
Minnesota has tax reciprocity agreements with Michigan and North Dakota. If you are a resident of one of these states, and your only Minnesota-source income is wages, those wages may be exempt from Minnesota tax if:
- You did not reside in Minnesota at any time during the tax year, and
- You filed the proper exemption certificate (Form W-4MN) with your Minnesota employer.
Note: If you meet these conditions, you are not required to pay Minnesota income tax on your wages.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select Minnesota.
- Click on the General tab.
- Select M1NR – Nonresidents/Part-Year Residents to open the screen.
- Check the box for Resident of Michigan or North Dakota and wages are fully reciprocal. You will complete any other applicable information.
- Click Save once complete.
Additional Resources
For further guidance, see: