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2023 Federal Conformity for Income Tax
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May Affect Tax Years 2017-2022
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Additional Federal Conformity Changes
We are reviewing new federal conformity changes signed into law on May 24, 2023. We will share updated guidance and tax forms for affected tax years when available. At this time, you should not amend any Minnesota returns based on these additional conformity changes.
The rules used to determine Minnesota income tax are generally based on federal income tax laws, so when federal income tax laws are changed, conforming changes to Minnesota’s income tax law must also be made. These conforming changes are made by updating Minnesota statutes to adopt the most current version of the Internal Revenue Code (IRC).
In January, Minnesota law was updated to recognize the IRC as amended through December 15, 2022. In May, Minnesota law was updated again to recognize the IRC as amended through May 1, 2023. These updates may impact previous Minnesota income tax returns. This means that many of the federal income tax nonconformity modifications reported on your 2017 through 2021 Minnesota returns are no longer required.
Who does this impact?
This may impact you if you filed a Minnesota income tax return between 2017 and 2022 with a nonconformity schedule. For more information, see our tables on form and line changes to the nonconformity schedules.
What do I need to do?
Because Minnesota has adopted federal income tax law changes that state law previously did not conform to, amended returns may be needed to correctly determine your Minnesota taxable income.
Use the updated forms and instructions on the website for the tax years you reported nonconformity adjustments along with the list below to determine if the tax law changes affect your returns. An amended return in one year may impact other years and require additional amended returns.
Review the resources below to determine if the tax law changes affect you. The statute of limitations to claim a refund has been extended to December 31, 2023, for the years that have expired statute of limitations. This extension is only for amended returns filed because of a law change in this tax bill.
Conformity by Form and Line
Conformity by Federal Act
If you have questions about the tax law changes, email us at taxlawchanges@state.mn.us.
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Minnesota remains out of conformity for these provisions, which will still require you to complete a nonconformity schedule:
- ARPA Section 9501. Credit for COBRA Continuation Coverage
- CARES Act Section 2205. TCDTR20 Section 213. Charitable Contribution Deduction Limitation for individual income tax only
- CARES Act Section 2303. Retroactive NOL Carrybacks and Suspension of 80% Limit
- CARES Act Section 2306. Modification of Business Interest Limitation
- COVIDTRA Section 210. Temporary Allowance of Full Deduction for Business Meals
- FFCRA Section 7001. ARPA Section 9641. Employer Credit for Paid Medical Leave
- FFCRA Section 7003. ARPA Section 9641. Employer Payroll Credit for Required Paid Family Leave
Minnesota remains out of conformity for these provisions, which will still require you to complete a nonconformity schedule:
- ARPA Section 9501. Credit for COBRA Continuation Coverage
- CARES Act Section 2205. TCDTR20 Section 213. Charitable Contribution Deduction Limitation for individual income tax only
- CARES Act Section 2301. TCDTR20 Sections 206 and 207. ARPA Section 9651. Employee Retention Credit
- CARES Act Section 2303. Retroactive NOL Carrybacks and Suspension of 80% Limit
- CARES Act Section 2306. Modification of Business Interest Limitation
- COVIDTRA Section 210. Temporary Allowance of Full Deduction for Business Meals
- FFCRA Section 7001. ARPA Section 9641. Employer Credit for Paid Medical Leave
- FFCRA Section 7003. ARPA Section 9641. Employer Payroll Credit for Required Paid Family Leave
- TCDTR Section 203. TCDTR20 Section 303. Employee Retention Credit for Employers Affected by Qualified Disasters
Minnesota remains out of conformity for these provisions, which will still require you to complete a nonconformity schedule:
- ARPA Section 9501. Credit for COBRA Continuation Coverage
- CARES Act Section 2204. Charitable contribution for filers who claim the federal standard deduction for individual income tax only
- CARES Act Section 2205. TCDTR20 Section 213. Charitable Contribution Deduction Limitation
- CARES Act Section 2301. TCDTR20 Sections 206 and 207. ARPA Section 9651. Employee Retention Credit
- CARES Act Section 2303. Retroactive NOL Carrybacks and Suspension of 80% Limit
- CARES Act Section 2304. Modification of Excess Loss Limitation
- CARES Act Section 2306. Modification of Business Interest Limitation
- COVIDTRA Section 210. Temporary Allowance of Full Deduction for Business Meals
- FFCRA Section 7001. ARPA Section 9641. Employer Credit for Paid Medical Leave
- FFCRA Section 7003. ARPA Section 9641. Employer Payroll Credit for Required Paid Family Leave
- TCDTR Section 104. Tuition and Fees Deduction for individual income tax only
- TCDTR Section 203. TCDTR20 Section 303. Employee Retention Credit for Employers Affected by Qualified Disasters
Minnesota remains out of conformity for these provisions, which will still require you to complete a nonconformity schedule:
- CARES Act Section 2301. Employee Retention Credit (TCDTR20 Sections 206 and 207)
- CARES Act Section 2303. Retroactive NOL Carrybacks and Suspension of 80% Limit
- CARES Act Section 2304. Modification of Excess Loss Limitation
- CARES Act Section 2306. Modification of Business Interest Limitation
- COVIDTRA Section 210. Temporary Allowance of Full Deduction for Business Meals
- FFCRA Section 7001. Employer Credit for Paid Medical Leave
- FFCRA Section 7003. Employer Payroll Credit for Required Paid Family Leave
- TCDTR Section 104. Tuition and Fees Deduction for individual income tax only
- TCDTR Section 203. Employee Retention Credit for Employers Affected by Qualified Disasters
Minnesota remains out of conformity for these provisions, which will still require you to complete a nonconformity schedule:
- CARES Act Section 2303. Retroactive NOL Carrybacks and Suspension of 80% Limit
- CARES Act Section 2304. Modification of Excess Loss Limitation
- TCDTR Section 203. Employee Retention Credit for Employers Affected by Qualified Disasters
Minnesota remains out of conformity for these provisions, which will still require you to complete a nonconformity schedule:
- CARES Act Section 2303. Retroactive NOL Carrybacks and Suspension of 80% Limit
- TCDTR Section 104. Tuition and Fees Deduction for individual income tax only
- TCDTR Section 203. Employee Retention Credit for Employers Affected by Qualified Disasters
