Updated final drafts of Schedules M1M, M1NC, and M1NR

Schedule

Line

From

To

M1M

6

This line is intentionally left blank

Federal section 179 expensing addition (determine from worksheet in the instructions)

M1M

14

This line is intentionally left blank

Addition from Schedule M1NC, Federal Adjustments, line 18

M1M

35

This line is intentionally left blank

Subtraction for railroad maintenance expenses

M1M

36

Federally taxable employer-provided mass transit benefits of up to $120/month

This line is intentionally left blank

M1M

38

This line is intentionally left blank

Subtraction from Schedule M1NC, Federal Adjustments, line 18

M1NR

12

Certain business expenses (from line 24 of federal Form 1040)

Educator and certain business expenses (add lines 23 and 24 of Form 1040 or from line 16 of Form 1040A)

M1NR

17

Deductions for alimony paid, student loan interest (See instructions)

Deductions for alimony paid, student loan interest, and tuition and fees (See instructions)

Line

How is this different?

12

Past versions of Schedule M1NC have required affected taxpayers to prepare a recomputed federal form if they had certain types of income, loss, or deduction calculated using a rule involving adjusted gross income (AGI). The 2015 Schedule M1NC requires these taxpayers to recalculate only those items of income, loss, or deduction and enter the difference between their federal and Minnesota amount on line 12.

14

For tax year 2013, Schedule M1SA included a line for taxpayers to enter the mortgage insurance premiums they deducted on federal Schedule A. There will not be a Schedule M1SA for tax year 2015. This federal deduction should be entered on line 14.

15

Taxpayers who, on their federal return, claimed an enhanced deduction for a charitable contribution of a conservation easement or food inventory must include the difference between their federal deduction and the deduction they are allowed for Minnesota purposes on line 15.

Additionally, taxpayers who enter an amount on lines 1 through 11 and who claimed a federal itemized deduction calculated using AGI, must recalculate that deduction for Minnesota purposes. If the deduction for Minnesota purposes is less than the federal deduction, the difference should be included on line 15.

17

Taxpayers who made a qualified charitable distribution (QCD) from their IRA should include, on line 17, the portion of the QCD that would have been allowed as a deduction if the distribution had been included in their AGI.

Additionally, taxpayers who recalculated a deduction for Minnesota purposes and calculated a larger Minnesota than federal deduction should include the difference on line 17.