University of Minnesota
University of Minnesota
http://www.umn.edu/
612-625-5000

Tax Resources and
Information


Advice and Commom Errors to Avoid
on State Tax Returns from the Minnesota Department of Revenue

The Minnesota Department of Revenue would like to share the following list of tax filing problems with the International Students who file either a Minnesota Property Tax (Renter's Refund) return or a Minnesota Income Tax Return.

During the process of reviewing the tax returns of International Students we have observed the omission of certain types of nontaxable income from the Property Tax Refund Return.

The following items must be included as additional nontaxable income on line 5 of the Minnesota Form M1PR:

  • Income exempt by tax treaty between the student‚s home country and the United States. This amount should be listed on Line 6 of the Federal Form 1040NR-EZ or Line 22 of Form 1040NR.
  • Scholarships, fellowships, and grants that are excluded from federal income. This amount should be listed on line 9 of the Federal Form 1040NR-EZ or Line 22 of Form 1040NR.
  • Tuition benefits received by Graduate Assistants (Teaching Assistants and Research Assistants) that are paid directly by a university financial aid office. The benefit amount can be found on the student‚s tuition statement.
  • Stipend or wages from a university, hospital or company in the home country received by foreign teachers, researchers or physicians. This< income must be included on the Form M1PR.

Some common errors involving the Federal Form 1040NR or 1040NR-EZ filed by
nonresident aliens:

  • Foreign students erroneously claiming that their entire wage compensation is exempt by tax treaty. Total exemption applies only in certain circumstances. Please review the tax treaty exclusion amount for your home country.

  • Those who itemize on their 1040NR or 1040NR-EZ must addback the State and Local Income Taxes on Line 2 of their Minnesota income tax return, Form M1.

If any of these situations apply to you, please make sure to include the proper amounts on line 5 of your 2005 Form M1PR. Also, if any income was omitted from your 2003 or 2004 returns, please file an amended Minnesota return, Form M-1PRX to correct it. Amended returns can be obtained on the Minnesota Revenue website at: www.taxes.state.mn.us or by calling (651) 296-4444.

GPS