Schedule M1nr Instructions - Nonresidents / Part-Year Residents Tax Reduce - 2001
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12001 Schedule M1NR instructions
Line 4. Include net business income or loss
Line 13. Include moving expenses paid while
New for 2001
incurred while a MN resident, and amounts
a MN resident or that were attributable to a
If you were a part-year Minnesota (MN)
from MN sources earned while a nonresident.
move into MN.
resident in 2001 and you received U.S. bond
Do not include income from personal or
interest or dividends from mutual funds that
Line 14. Follow the steps below:
professional service performed in MN while a
are attributable to federal bonds, bills, or notes
resident of Michigan, North Dakota, or
1 Multiply line 27 of Form 1040 by the
while a MN resident, you are not required to
Wisconsin.
percentage that your MN self-employment
include these amounts when calculating your
income is to your total self-employment
Minnesota tax.
Line 5. Include net capital gain or loss
income. (Total self-employment income is the
received while a MN resident, and net capital
Who must file
sum of lines 1 and 2 of federal Schedule SE.)
gain or loss from MN sources received while a
If you were a nonresident or part-year MN
The result is your MN self-employment tax
nonresident. Nonresidents: If you sold a
resident in 2001, you may reduce your MN tax
deduction.
partnership interest and the gain was taxable to
by completing Schedule M1NR.
2 From the amount on line 3 of the worksheet
MN and to your home state, see Schedule
for line 28 of Form 1040 (or line 15 of the
You must file a MN Form M1 and Schedule
M1CRN.
worksheet found in Publication 535),
M1NR, if:
Line 6. Include IRA distributions and
determine the amount received from self-
• you and your spouse received gross income
pension and annuity payments received while
employment in MN.
assignable to MN of $7,450 or more, or
a MN resident.
3 Divide step 2 by line 3 of the worksheet (or
• the total of your 2001 MN gross income
Line 7. Include income from rents, royalties,
line 15 of the worksheet found in Publica-
passed through to you from all fiduciaries
partnerships, S corporations, estates and trusts
tion 535). Convert to a percentage.
(line 10 of Schedule KF), partnerships (line
earned while a MN resident, and amounts
20 of Schedule KPI), and S corporations
4 Multiply line 28 of Form 1040 by the
from MN sources earned while a nonresident.
(line 17 of Schedule KS) is $7,450 or more.
percentage in step 3. The result is your MN
self-employed health insurance deduction.
Line 8. Include net farm income or loss
Gross income is income before any deduc-
incurred while a resident, and amounts from a
5 Add step 1 and step 4. Fill in the result on
tions and expenses.
MN farm while a nonresident.
line 14, column B.
If your MN gross income is less than $7,450,
Line 9. Include other income you received
Line 15. To determine your:
and you had tax withheld or paid estimated
while a MN resident and amounts from lines
tax, fill in lines 1 through 9 of Schedule
• MN Keogh deduction: Multiply your federal
14 and 21 of Form 1040 you received from MN
M1NR, put a zero on line 10 and line 18, then
Keogh deduction by the percentage you
sources while a nonresident. (Include all MN
complete the rest of the schedule. Attach a
determined in step 1 of line 14.
gambling winnings.)
copy of Schedule M1NR to Form M1.
• MN IRA, SEP or SIMPLE plan deduction:
Line 11. Part-year residents: Include the portion
If you were a resident of Michigan, North
Multiply your federal deduction by the
of federal student loan interest deduction that
Dakota, or Wisconsin for all of 2001, fill out
percentage your MN earned income is to
represents interest paid while a MN resident.
this schedule only if you received income from
your federal earned income (without
Nonresidents: Follow the steps below:
sources in MN other than from personal or
lowering your wages by self-employment
professional service (including wages, salaries,
losses). For purposes of this deduction only,
1 From the front of this schedule, add lines 12
tips, commissions, bonuses, fees, and similar
earned income includes wages, self-
through 16 of column B.
compensation) performed in MN.
employment income and all other earned
2 Subtract step 1 from line 10 of this schedule.
income, plus all taxable alimony received.
Column B instructions
3 Add lines 24 and 33 of Form 1040 (or lines
Subtract deductible Keogh contributions
Enter what is assignable to MN according to
17 and 19 of Form 1040A).
and self-employment tax deductions
the following instructions. However, if you
(Schedule SE) from that total.
4 Divide step 2 by step 3 and convert to a
are a partner or a shareholder, enter the
percentage.
amounts from the Schedule KPI or KS and
If your spouse also worked, determine the
5 Multiply line 24 of Form 1040 (or line 17 of
follow the instructions with that schedule.
spousal deduction in the same way. Use
Form 1040A) by the percentage in step 4.
only your spouse’s earned income plus your
Line 1. Include wages, salaries and tips,
Fill in the result on line 11, column B.
spouse’s federal IRA, SEP or SIMPLE plan
commissions and bonuses received while a
deduction.
However, if you can claim the alimony paid
MN resident and the amounts received from
deduction (see line 16) in addition to the
work in MN while a nonresident. Do not
Line 16. Part-year residents: Include alimony
student loan interest deduction, you must
include: MN income earned while a resident of
paid while a MN resident. Nonresidents:
follow the steps below:
Michigan, Wisconsin, or North Dakota; or any
Follow the steps below:
compensation received for work performed
1 Divide line 10, column B, by the total federal
1 From the front of this schedule, add lines 11
while a MN resident but deferred to a year
income (sum of lines 1 through 9, column
through 15 of column B.
when you were a nonresident for the full year.
A) and convert to a percentage.
2 Subtract step 1 from line 10 of this schedule.
Line 2. Include all interest earned (credited
2 Multiply the federal student loan interest
3 Add lines 31a and 33 of Form 1040.
to your account) while a MN resident, except
deduction (line 11, column A) by the
4 Divide step 2 by step 3 and convert to a
U.S. bond interest. Also include interest and
percentage in step 1. Fill in the result on
dividends earned from non-MN state or
percentage.
line 11, column B.
municipal bonds (which are not included on
5 Multiply line 31a of Form 1040 by the
Line 12. Multiply line 25 of Form 1040 by the
your federal return) while a resident.
percentage in step 4. Fill in the result on line
percentage your MN earned income is to your
16, column B.
Line 3. Include all dividends earned while a
federal earned income. For purposes of this
MN resident, except the portion of dividends
deduction only, earned income includes wages,
Line 24. The result on line 24 is the ratio of
from mutual funds that are attributable to
self-employment income and all other earned
MN income to federal income.
federal bonds, bills, or notes.
income, plus all taxable alimony received (line
11 of Form 1040).
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