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Generally, beneficiaries do not pay income tax on money or property that they inherit, but there are exceptions for retirement accounts, life insurance proceeds, and savings bond interest. Money inherited from a 401(k), 403(b), or IRA is taxable if that money was tax deductible when it was contributed.
You may claim exempt from Minnesota withholding if at least one of these apply: You meet the requirements and claim exempt from federal withholding. You had no Minnesota income tax liability last year, received a refund of all Minnesota income tax withheld, and do not expect to owe state income tax this year.
Minnesota Income Tax Calculator 2022-2023. If you make $70,000 a year living in Minnesota you will be taxed $11,643. Your average tax rate is 11.67% and your marginal tax rate is 22%. This marginal tax rate means that your immediate additional income will be taxed at this rate.
You are a Minnesota resident for all or part of the year. You live in or spend more than half the year in Minnesota, and you owned, occupied, or maintained an abode in the state (a residence suitable for year-round use and equipped with its own cooking and bathing facilities). You receive income from Minnesota sources.
Minnesota Tax Rates, Collections, and Burdens Minnesota has a graduated individual income tax, with rates ranging from 5.35 percent to 9.85 percent. Minnesota also has a 9.80 percent corporate income tax rate.
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How Income Taxes Are Calculated. First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k). Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income.

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