Updated 2017 Minnesota Schedules

The Tax Cuts and Jobs Act of 2017 was enacted on December 22, 2017. This federal legislation affects certain individuals filing their 2017 Minnesota income tax return.

What federal changes impact 2017 Minnesota income tax returns?

Medical and Dental Expenses

Taxpayers can deduct federal itemized deductions for medical and dental expenses exceeding 7.5% of their adjusted gross income (AGI). For Minnesota tax purposes, taxpayers can only deduct medical and dental expenses exceeding 10% of AGI. Taxpayers must add the difference back to Minnesota taxable income.

Note: This addition may impact the calculation of Minnesota alternative minimum tax and the Minnesota Long-Term Care Insurance Credit.

Federal Bonus Depreciation

The act modified federal bonus depreciation in a few ways.

• The act allows taxpayers who place certain business assets into service after September 27, 2017 to claim federal bonus depreciation up to their full basis in the asset. For Minnesota tax purposes, taxpayers must capitalize the amount of federal bonus depreciation claimed in excess of 50% of basis.
• The act expanded federal bonus depreciation to allow certain assets not previously eligible. Minnesota does not allow bonus depreciation on these assets. The amount of federal bonus depreciation that cannot be claimed for Minnesota tax purposes can be depreciated using the appropriate recovery period and method for the asset.
  

What 2017 Minnesota schedules have been updated?

The following 2017 Minnesota schedules have been updated:

• Schedule M1NC, Federal Adjustments
• Lines 1-3 are no longer intentionally left blank and instructions were added
• Line 10, instructions, and worksheet
• Schedule M1MT, Alternative Minimum Tax, line 9, instructions, and worksheet
• Schedule M1LTI, Long-Term Care Insurance Credit, line 3
• Schedule M1M, Income Additions and Subtractions, line 5 worksheet
• Schedule M1NR, Nonresident/Part-Year Residents, line 10 and instructions
  

Where can I find these forms?

You can find updated Schedules M1NC, M1MT, M1LTI, M1M, and M1NR on the Individual Income Tax Forms page.

What if I have questions?

Contact efile.devsupport@state.mn.us or 651-556-4818.