M1RCR: Credit for Tax Paid to Wisconsin (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
2024 Schedule M1RCR calculates Minnesota's Credit for Tax Paid to Wisconsin on income taxed by both states. It reports the income, taxes, and credit amounts and must be included with Form M1.
Who files this form
Complete 2024 Schedule M1RCR if you paid Minnesota and Wisconsin income tax on the same income while you were a Minnesota resident.
To qualify, you must have been a full-year or part-year Minnesota resident in 2024 and received the income taxed by both states while you were a Minnesota resident.
The instructions also require a 2024 Wisconsin Form 1NPR. If an entity paid Wisconsin taxes on your behalf and you were not required to file Form 1NPR, provide the entity-level return and documentation of your ownership percentage, showing your share of the income and taxes paid.
What you'll need
Have these forms and records available, as applicable:
- Your Minnesota Form M1 and Wisconsin Form 1NPR.
- Schedule M1C, Other Nonrefundable Credits, and Schedule M1REF for reporting the credits.
- Schedule M1M, Income Additions and Subtractions, if you were a full-year resident.
- Schedule M1NR, Nonresidents/Part-Year Residents, if you were a part-year resident.
- Records of income received while you were a Minnesota resident that Wisconsin also taxed, including wages and personal service income.
- Schedule M1MB if an S corporation or partnership paid Wisconsin income taxes that you included on line 2 of that schedule.
- The Wisconsin entity-level tax return and documentation of your ownership percentage if an entity paid taxes on your behalf.
- Schedule M1LS if you reported a qualified retirement plan lump-sum distribution.
How to file
Include Schedule M1RCR with your Form M1.
- Include the amount from line 7 on line 3 of Schedule M1C.
- Enter the amount from line 11 on line 6 of Schedule M1REF.
- Part-year residents must use the worksheets for lines 7 and 11.
- If claiming taxes paid by a pass-through entity, check the appropriate non-composite or composite tax box and provide the required entity documentation.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Including the wrong taxes. Do not include taxes paid to states other than Wisconsin, local governments, national governments, or Canadian provinces or territories.
- Using the wrong Wisconsin tax amount on line 6. Use the income tax before donations and before subtracting Wisconsin withholding or estimated payments.
- Including certain lump-sum distributions. Exclude qualified retirement plan lump-sum income reported on Schedule M1LS from line 1, and exclude the related tax from line 6.
- Skipping rounding instructions. Round dollar amounts to the nearest whole dollar. Carry the ratios on lines 3 and 10 to five decimal places, using 1.00000 when the numerator exceeds the denominator.
- Forgetting the attachment. Schedule M1RCR must be included with Form M1.
Questions people ask
Can a part-year Minnesota resident claim this credit?
Yes, if eligible. You must have been a Minnesota resident when you received the income taxed by both states and must file an individual or entity-level Wisconsin return. Use the part-year resident worksheets for lines 7 and 11.
What if I paid income tax to another state too?
Complete a separate Schedule M1CR for each other state. Add the applicable amounts from those schedules to line 7 of Schedule M1RCR and report the total on line 3 of Schedule M1C.
What personal service income goes on line 9?
Include wages, salaries, tips, commissions, and bonuses that Wisconsin taxed while you were a Minnesota resident.
Where can I get help?
Visit www.revenue.state.mn.us, email individual.incometax@state.mn.us, or call 651-296-3781 or 1-800-652-9094. Information is also available in alternate formats.