Income Taxes for Minnesota– make sure to adjust for your addbacks!

UPDATE: Minnesota has notified the public that they have since accepted the changes that the IRS has made. Anyone who filed using the M1NC will receive an adjusted refund after Minnesota Revenue reviews and adjusts the return. Call us today if you have any questions!

 

If you a resident in Minnesota, or work in Minnesota during the year, you will need to be sure to file a Minnesota tax return. Generally speaking, Minnesota taxation rules tend to follow the IRS regulations. In the years they don’t, however, a form called the M1NC needs to be filed with your Minnesota return. 2012 is one of those years in which Minnesota has not accepted the changes that the IRS has made, and thus, there are a series of adjustments that have to be made before arriving to your Minnesota taxable income.

The deductions affected are:

  • Educator expense
  • Tuition and Fees deduction
  • Tax free IRA donation to charity
  • Certain depreciation rules
  • Mortgage insurance premiums
  • and others

In addition, there are many tax software programs that are NOT currently supporting this form! If you do not file this, you will surely hear from Minnesota later. Give us a call today; we are preparing this form for each and every client that is affected by these adjustments.