Gian $(22)$ is single and has been a resident of Minnesota since he entered the U$.$S$.$ Navy. In $2023,$ he earned $$9,421$ while stationed in Fallon, NV$.$ For the remainder of the year, he was on active duty aboard the USS Roosevelt in Spain, where he earned $$33,492.$ He has not returned to Minnesota during the tax year. What is Gian's Minnesota filing requirement for $2023?$

Gian is not required to file a Minnesota return because none of his active duty military pay is from Minnesota sources.

Gian is required to file a Minnesota resident tax return, and all of his active duty military pay is subject to Minnesota tax.

Gian is required to file a Minnesota resident tax return and report all of this income regardless of source, but may subtract his active duty military pay.

Gian is not required to file a Minnesota return because his active duty military pay while serving overseas is exempt from Minnesota taxation. Since his overseas military pay is the majority of his earnings for $2023,$ his income is less than the filing threshold.