Attention Minnesota Preparers !!!!

[kcjenkins]

:read: MN adopted federal tax law changes with exceptions that may impact your MN returns

04/11/2009

Attention Minnesota taxpayers filing their 2008 individual income tax returns:

Minnesota has adopted federal tax law changes for tax year 2008, with exceptions that may impact your Minnesota returns.

Previously filed returns that may be affected will need to be marked "completed" prior to receiving any newly released updated forms. This will preserve amounts as originally reported if an amended return is required.

Legislation enacted April 3, 2009, adopts all of the federal tax provisions enacted after February 13, 2008, with the exception of the federal deduction for educator expenses and the deduction for higher education tuition and fees. The bill eliminates the need for Schedule M1NC, Federal Adjustments, and requires the two federal deductions to be added back to Minnesota taxable income on Schedule M1M, Income Additions and Subtractions, for tax year 2008.

Because the 2008 Minnesota forms and instructions were printed before Minnesota adopted the federal changes, they include adjustments for the difference between state and federal law. Now that Minnesota has adopted all but two federal provisions, you will need to follow the guidelines below for filing or amending your Minnesota return.

If you have not yet filed your 2008 Form M1--

Do not complete Schedule M1NC since the schedule is now obsolete.

If you claim the federal educator expenses deduction and/or the college tuition and fees deduction on your federal return (lines 23 and 34 of federal Form 1040 or lines 16 and 19 of Form 1040A), you must add back these deductions on line 12 of Schedule M1M (Rev. 4/09). Disregard line 29 of the schedule.

If you are a part-year resident, a nonresident, claiming the child and dependent care credit or claiming the K-12 education credit, be sure to use Schedules M1NR, M1CD and M1ED revised April 2009.

If you have filed your 2008 Form M1 and included Schedule M1NC--

If you added back only higher education tuition and fees and/or teacher classroom expenses (lines 1 and 2 of Schedule M1NC), there is no further action for you to take.

If you added back tax-free charitable transfers from IRA accounts or made any adjustments other than the deductions for tuition and fees and educator expenses, you must file an amended return, Form M1X.

The IRS and MN extended the due date to file and pay taxes for MN and ND flood victims until May 15th.

However, the IRS will not accept direct debit dates for payment that are after April 15th for e-file purposes prior to an April 15th filing date. User will need to wait until AFTER April 15th to submit a direct debit payment via e-file. Our e-file team says this is an IRS validation issue that the IRS has not updated and thus not a program issue.

[MN2V]

Thanks for the info. Unfortunately it doesn't affect the teachers who are really not appreciated by

our legislators who are now trying to get legislation through that anyone with any college degree who

takes a 5 week class with no student classroom practice can be a teacher!

sorry...I hate the way Minnesota governor loves to say No New Taxes...no progress!

There, I feel better.

[GLJEANNE]

Amen to that!!! He's been a disaster for this state.

We got lucky with the compliance bill, originally there was much more they weren't going to comply with.

[MN dhawk]

Could not agree with you two more. How many more bridges must fall before people make the connection?