Minnesota has adopted all of the changes to the Internal Revenue Code (IRC) enacted between March 18, 2010, and April 14, 2011, effective the same date as the federal changes.
As a result:
- The value of health insurance benefits provided to employees' nondependent children younger than age 27 is exempt for Minnesota tax purposes. While legislation signed into law in April 2011 conformed Minnesota treatment of these benefits to federal law for 2010 only, this new law covers any benefits provided in 2011 and all future years.
- The maximum exclusion for employer-provided adoption assistance is the same for both federal and Minnesota tax purposes.
- The exclusion from income of an employee for amounts paid or expenses incurred (up to $5,250 annually) by the employer under an educational assistance program is extended through 2011 and 2012.
- For benefits paid in 2011, employers can provide the same amount of tax-free fringe benefits to their employees for qualified transportation fringe benefits that the employer provides through transit passes and vanpooling as the employer provides to employees as a tax-free parking benefit.