Federal Adjustments


In December 2019, federal tax laws that affect federal adjusted gross income for tax year 2019 were changed. Minnesota law has not changed. As a result, you may need to file 2019 Schedule M1NC, Federal Adjustments, with your 2019 Minnesota Individual Income Tax return.

Do I need to complete Schedule M1NC?

File 2019 Schedule M1NC with your Minnesota individual income tax return if you did any of the following on your 2019 federal income tax return:

  • Claimed a deduction for tuition and fees
  • Excluded discharged home mortgage debt on your principal residence from income
  • Excluded an IRA withdrawal that would have been included in income
  • Received a distribution from a 529 savings plan for the following items:
    • Fees, books, supplies, and equipment required for participation in an apprenticeship program
    • Pay for education loans of the designated beneficiary or their sibling
  • Claimed depreciation on a race horse using a three-year class life
  • Chose the seven-year recovery period for certain motorsport racing track facilities
  • Claimed accelerated depreciation for business property on an Indian reservation
  • Claimed the modified treatment of certain qualified film and television expenses
  • Adjusted your federal taxable income for a change relating to an empowerment zone
  • Deducted the additional first-year 50% bonus depreciation for cellulosic biofuel facilities
  • Claimed an energy efficient commercial buildings deduction
  • Elected to recognize the gain from qualifying electronic transmissions transactions ratably over an 8-year period
  • Claimed any of the following federal credits:
    • Second Generation Biofuel Producer Credit
    • Credit for Qualified Fuel Cell Motor Vehicles
    • Alternative Fuel Refueling Property Credit
    • 2-Wheeled Plug-In Electronic Vehicle Credit
    • Energy Efficient Homes Credit
    • Indian Employment Credit
    • Employee Retention Credit

What if I donated to a qualified disaster relief organization?

If you donated to a qualified disaster relief organization and made a deduction for the donation on your 2019 federal individual income tax return, see the instructions for 2019 Schedule M1SA, Minnesota Itemized Deductions.

How will filing Schedule M1NC affect my Minnesota individual income tax return?

Filing 2019 Schedule M1NC with your Minnesota individual income tax return may change your 2019 Minnesota tax liability. For details, see the instructions for line 12 of 2019 Schedule M1NC.

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