COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. For more information, updates, and resources, see Our Response to COVID-19.
Are taxpayers required to amend their Minnesota return to reduce the addback on qualifying depreciable property?
No. You may choose not to reduce the addback for qualifying depreciable property and continue to claim the related one-fifth subtractions on subsequent returns. If we audit a return with qualifying depreciable property, the addback and subsequent subtractions will be adjusted.
If taxpayers included Section 179-eligible purchases in the bonus depreciation on their 2018 and 2019 federal and Minnesota income tax returns, can they now amend their state return to report those purchases separately?
No, unless you first amend your federal return. Your treatment of bonus depreciation and Section 179 expensing on the Minnesota return must match what you elected on the federal return. If you amend your federal return to separate Section 179 expensing from what you previously claimed for bonus depreciation, you must amend your Minnesota return to reflect the federal changes within 180 days.
Will Minnesota conform to federal tax law changes enacted after December 31, 2018?
We continue to monitor the Minnesota Legislature and will provide updates if any tax-related bills are enacted.
What is Minnesota’s dependent exemption amount for tax year 2020?
The dependent exemption amount is $4,300 per qualifying dependent. It phases out at certain income levels depending on your filing status:
Married Filing Jointly and Qualifying Widow(er): $296,750
Married Filing Separately: $148,375
Head of Household: $247,300
When did Minnesota conform to Opportunity Zone Gain deferrals, and who qualifies for a refund under this provision?
Minnesota retroactively conformed to the Opportunity Zone gain deferrals in May 2019. This permits investors to defer tax on almost all capital gains they properly reinvest in Opportunity Zones from January 1, 2018, to December 31, 2026.
C corporations may get a refund under this provision.
Individuals must adjust for the retroactive conformity. Due to the Special Limited Adjustment, individuals may not claim a refund.