Updated instructions for standard deduction calculation

The Minnesota Department of Revenue updated the worksheet for calculating the standard deduction limitation in the 2019 and 2020 Minnesota Individual Income Tax instructions.

The worksheet for calculating this limitation was incorrect. The calculation reduced the standard deduction by 20%, but it should have reduced this deduction by 80%.

Does this update impact my clients?

If your clients’ federal adjusted gross income exceeds these thresholds, this update may impact them.

Filing Status	Tax Year 2019	Tax Year 2020
Single	$276,000	$280,534
Married Filing Jointly	$357,334	$363,200
Qualifying Widow(er)
Married Filing Separately	$178,675	$181,609
Head of Household	$317,000	$322,200

What should I do if my clients are impacted?

If your clients:

• Have not filed 2019 or 2020 Minnesota income tax returns, use the updated instructions on our website. 

Note: We are still reviewing the 2019 Minnesota income tax instructions to account for tax law changes.

• Already filed 2019 or 2020 returns, we will adjust their returns and send a letter. If your clients need to file amended returns for other reasons, you may make this adjustment when filing.

We will not assess penalty or interest on balances due solely to this issue. If your clients do not pay any balance due within 60 days, we may assess penalty and interest.

Questions?

Call us at 651-296-3781 or 1-800-652-9094, or email individual.incometax@state.mn.us.

 

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