Hi Experts,

All of 2013 I was living and working as a contractor in MN. But my employer is in MI and he has been paying MI state taxes. Now do I attribute my income to MI as my employer is in MI or to MN as I live and work in MN?

Thanks!

If you lived and worked in Minnesota and NEVER set foot in Michigan, then you owe ONLY Minnesota taxes.

The Minnesota tax return can be filed electronically, but when you file the Michigan return asking for a FULL refund of Michigan taxes, THAT return MAY have to be mailed because they will want to see a copy of the Minnesota tax return as proof that you are paying the Minnesota taxes.

Thanks @AtlantaTaxExpert. My employer has been withholding MI taxes and I have paid estimated taxes to MN. So more specifically what I am trying to figure is,

a) as I fill in Schedule NR for MI do I attribute the full income to MN and get a full refund from MI and pay that to MN or

b) attribute the full income to MI in schedule NR and when I file MN, claim credit for taxes paid to other state and get the refund from MN

Last year TaxAct suggested I do (a), which I did and this year TurboTax suggests I do (b) and hence the confusion.

Thanks again!

You lived and worked in Minnesota, so you attribute the income to Minnesota and ask for a FULL refund from Michigan.