Tax Tip #2 for Tax Professionals - Where to find new tax law changes

There were significant revisions to the federal tax laws, but Minnesota’s tax laws did not significantly change. Since the end of the 2018 Legislative Session in May, we’ve been updating our tax filing systems to accommodate the differences between federal and Minnesota tax laws.

Highlighted changes for Minnesota this year:

• Form M1, Individual Income Tax will begin with Federal Adjusted Gross Income (FAGI) instead of Federal Taxable Income (FTI).
• Personal exemptions will be allowed on Minnesota returns.
• Your clients may claim the Minnesota standard deduction or itemized deductions on their Minnesota income tax return, regardless of their choice on the federal return.
  • To itemize deductions for Minnesota purposes, complete Schedule M1SA, Minnesota Itemized Deductions.
• Schedule M1NC, Federal Adjustments now has a column for additions and a column for subtractions.
• Two new nonrefundable credits are available:
  • Beginning Farmer Management Credit
  • Tax Credit for Owners of Agricultural Assets
• An Education Savings Account Recapture Tax may apply for nonqualified distributions from a 529 plan.
• We created Schedule LK, Like-Kind Exchanges to report like-kind exchanges under Minnesota law.
• Your clients may be able to deduct the following for Minnesota purposes:
• Moving expenses (Schedule M1MOVE)
• Casualty and theft losses (Schedule M1CAT)
• Unreimbursed employee business expenses (Schedule M1UE) 

For more information 

• Visit us online to learn more about all tax law changes.
• Subscribe to our email list to get the latest tax information for you and your clients. After entering your email, choose Individual Income Tax Updates – Tax Professionals under subscription topics.