Minnesotta help please

[LCP]

Does reciprocity extend to unemployment benefits?

Taxpayer lost his job in MN and moved to Michigan in late 2008. He receives unemployment from MN as his sole source of income.

He had MN withholding..... would he receive all of it back from MN assuming he filed and paid taxes as a MI resident?

[leroylund]

Mn Ttax

Mn Taxes All Unemployment

[JON]

Do you not apply

for unemployment in the state you are a resident in. It would then become taxable in your resident state then.??

[Mike Mac]

Reciprocity

From the MN state website:

"Reciprocity Agreements - MI, ND, and WI. Full-year residents of these states with only wage income are not subject to MN tax."

Looks like your client was not a full-year resident of MI nor did he have income only from wages so I'd think the reciprocity agreement does not work. If he meets the minimum filing requirements for MN it looks like you need to do a part-year resident return.

Mike

[LCP]

for unemployment in the state you are a resident in. It would then become taxable in your resident state then.??

Not sure. If so then I guess you'd need to make a change when you move.

He's living with his parents in MI so I'm not sure if we'd call him a Michigan resident.

[JON]

It means

the MI resident is tax in MI even with MN wages. He must have applied for UC in MI which means that is also MI income. Did you ever wonder why MN and MI offer this. It was something called Northwest Airlines.