![]() ![]() In other words, if you are a Minnesota resident, you will still pay Minnesota income tax even if you spend the long Minnesota winter working from the beach in Florida or by the pool in Arizona. If an individual is a Minnesota resident under either test, then that individual will pay tax on 100% of his or her income regardless of where that income was earned. ![]() As before, an individual is a Minnesota resident if he or she either (a) objectively spends more than half the year in Minnesota and maintains an abode in the state (“physical presence test”) or (b) subjectively remains “domiciled” in Minnesota (“domicile test”). The pandemic has not changed the rules for when Minnesota would consider a person a resident of the state. In fact, working remotely from another state can have unintended tax consequences for the individual and for his or her employer. To save state income tax, a Minnesota resident would have to actually move to a lower-tax state, rather than just work from that state during the pandemic. With high-speed internet and sophisticated remote access technology, people are asking - couldn’t I just work from the beach? And, if the beach happened to be in a tax-free or lower-tax state, couldn’t I save some money on state income taxes?įor Minnesota residents, however, it is not as simple as renting a condo and bringing your laptop to Florida or Arizona. Working from home during the pandemic has become the new normal. Working from the beach: Minnesota residency and unintended tax consequences ![]()
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