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What is the Minnesota withholding for nonresident partners?

The partnership or S corporation must withhold 9.85% of a nonresident individuals Minnesota income, less any allowable credits that are passed through to the individual.

What makes you exempt from Minnesota withholding?

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.