Must pay 2 states income tax??
I just received a letter from the state of Minnesota
saying that I must file their tax return and pay for
any gains on Minnesota vacant property that I sold
while living and paying tax in Illinois.
I had the Minnesota property since 1974 and sold
2 lots in 2001 which I itemized in my 2001 tax
returns (federal-state of IL.)
I have not been a resident of Minnesota since 1979.
Is this legal?
Question: I just received a letter from the state of Minnesota
saying that I must file their tax return and pay for
any gains on Minnesota vacant property that I sold
while living and paying tax in Illinois.
Answer: That's probably within the laws of Minnesota.
Question: I had the Minnesota property since 1974 and sold
2 lots in 2001 which I itemized in my 2001 tax
returns (federal-state of IL.)
Answer: You'll probably need to file an amended Illinois return and claim a credit
for taxes paid to another state. See what IL tax laws say about it.
Question: I have not been a resident of Minnesota since 1979.
Answer: Irrelevant
Question: Is this legal?
Answer: Yes. It might be a great time to find a local CPA or EA that is familiar with the
tax issues of both states.