April 3, 2009
Federal law changes adopted by Minnesota for TY2008, with exceptions
Legislation enacted April 3, 2009 adopts most of the federal tax provisions enacted after February 13, 2008. This bill eliminates all adjustments on Schedule M1NC, Federal Adjustments, with the exception of the federal deductions for higher education tuition and fees and for educator expenses. These two deductions will need to be added back to taxable income on line 12 of Schedule M1M, Income Additions and Subtractions.
Schedule M1NR, Minnesota Income of Nonresidents and Part-year Residents, and the instructions for Schedule M1CD, Child and Dependent Care Credit, Schedule M1ED, K-12 Education Credit, and Form M1PR, Property Tax Refund Return, have also been updated to reflect the recent changes.
Most software developers are working to update their programs. You will receive updated versions as soon as they become available. Contact your software company with questions.
Bonus depreciation/Section 179 expensing NOT affected
Bonus depreciation and section 179 expensing are not affected by the recent federal conformity bill. Taxpayers must continue to add back 80 percent of the difference between expensing allowed for federal and state tax purposes when completing their Minnesota return.
Tax extensions for flood victims
Tax relief is available to taxpayers affected by flooding in northwestern Minnesota. Affected taxpayers have until May 15 to file tax returns and make payments for payments and returns due between March 20 and May 15, 2009, including individual income tax. For more information, see http://webprod/other_supporting_content/pages/flood_information.aspx