Are you a Minnesota Resident?

/ October 23, 2014

house - iStockWe’ve said before that Minnesota is not a favorable state in which to die because of the state’s estate tax laws. Some believe that the same is true for other tax reasons as well. While Minnesota does offer a lot to its residents, which attracts them to make Minnesota their home, there are people who are opting to move out of the state and change his or her residency.

A lot of people think they can just change their driver’s license to another state and/or their mailing address to establish residency elsewhere. However, there are a lot of steps to take to effectively make the change. The MN Department of Revenue follows a list of criteria to determine whether someone has established permanent residency other than in Minnesota. The MN Department of Revenue evaluates the following factors1:

  1. Homestead Status
  2. The location of your home
  3. The address where mail is received
  4. Present status of former living quarters (is it sold, rented, etc.?)
  5. Status of insurance and information provided to the insurance company about a person’s residency
  6. The amount of time you spend in Minnesota
  7. The location of your bank accounts
  8. Where you qualify for unemployment insurance
  9. The state where you filed your previous resident tax returns
  10. The state where you earn your wages
  11. Where you are registered to vote
  12. Which state issued your driver’s license
  13. Where your vehicles are registered
  14. Where you keep your vehicles
  15. Where you maintain professional licenses
  16. The location of your fraternal, social or athletic memberships
  17. Where you maintain union memberships
  18. The location of your place of worship
  19. Where you qualify for in-state tuition
  20. Where your children or spouse attend school
  21. Whether you can be claimed as a dependent on another person’s federal income tax return and that person’s state of residence
  22. Where your spouse or dependents reside

Additionally, if you are a resident of a state other than MN, you may still be taxed as a MN resident if you spend at least 183 days in Minnesota. In calculating the 183 days, any portion of a day that is spent in Minnesota (e.g. 1-hour) will count as spending the entire day in Minnesota. So even if you have met most of the factors listed above, if you spend at least 183 days in MN you might be considered a full-year Minnesota resident.

If you have changed your residency from Minnesota to another state, or wish to do so in the future, it is advisable to consult with the proper professional advisor to confirm that you have taken, or will take, the necessary steps to effectively establish your permanent residency elsewhere.

1 Minnesota Department of Revenue Residency Fact Sheet

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