M1RCR - Taxes Paid to Minnesota AND Wisconsin
The Minnesota Department of Revenue provides Schedule M1RCR to allow taxpayers who are residents of Minnesota and have paid income tax to both Minnesota and Wisconsin on the same income to claim a credit for the tax paid to Wisconsin. This prevents double taxation on the same income.
Eligibility for M1RCR Credit
- Taxpayer must be a Minnesota resident for the tax year.
- Income must have been taxed by both Minnesota and Wisconsin.
- The credit is only available for income tax paid to Wisconsin, not local taxes (e.g., city, county, or school district).
- If you filed Schedule MILS, do not include tax paid on income from a lump-sum distribution from a qualified retirement plan.
How to Calculate the Credit
- Find your adjusted gross income (AGI) from line 1 of Form M1 or line 43 of Schedule MINC.
- Determine the portion of AGI received while a Minnesota resident.
- Identify the amount from Step 2 that was also taxed by Wisconsin.
- Enter that amount on line 1 of Schedule M1RCR.
- Enter the income tax amount from Wisconsin Form 1NPR (before donations, withholding, or estimated tax payments) on line 6.
Where to File Schedule M1RCR
Schedule M1RCR is attached to your Minnesota individual income tax return (Form M1). You can complete it manually or use tax preparation software provided by the Minnesota Department of Revenue. The software guides you through adding Schedule M1RCR under the Credits section when filing your state return.
Important Notes
- Do not include any local taxes (city, county, school district) paid to Wisconsin.
- Only income taxed by both states qualifies for the credit.
- For questions or additional forms, visit the Minnesota Department of Revenue website or contact them via email or phone.
Source:
Schedule M1RCR - Credit for Taxes Paid to Wisconsin
Form M1 Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions before filing.