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The Minnesota Department of Revenue sent an email notice on September 24, 2021, about changes to the standard deduction limitation calculation in the 2019 and 2020 Minnesota Individual Income Tax instructions.
For clients who already filed for 2019 and 2020, we will adjust returns affected by this change.
When will Revenue adjust 2019 and 2020 returns?
We will begin adjusting a combined total of 45,000 returns on April 25, 2022. We plan to complete these adjustments by this summer.
Affected clients will receive one or more letters when we complete their adjustments. The letters will explain this adjustment was due to a department error and not one they or their tax preparer made.
How do I know if this adjustment affects my clients?
If your clients claimed the standard deduction and their federal adjusted gross income exceeds these thresholds, they may get an adjustment letter from us.
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Filing Status
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Tax Year 2019
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Tax Year 2020
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Single
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$276,000
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$280,534
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Married Filing Jointly
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$357,334
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$363,200
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Qualifying Widow(er)
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Married Filing Separately
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$178,675
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$181,609
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Head of Household
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$317,000
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$322,200
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Will penalty and interest apply to this adjustment?
We will not assess penalty or interest on balances due solely to this issue. If your clients do not pay any balance due on the letter within 60 days, we will assess penalty and interest on the unpaid balance.
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