MN TAX FORMS: SOME APPEARANCES AND DISAPPEARANCES FOR 2015
Do you use your prior-year tax return as a jumping-off point for this year’s forms? Minnesota taxpayers generally can match up their 2014 returns with their 2015 forms without many changes – except for the different numbers on the lines, of course.
But Minnesota Department of Revenue and the Legislature did add and subtract items important to some state taxpayers. Here are a few:
Minnesota Political Contribution Refund. As we reported earlier, it’s gone, at least through mid-year 2017. Previously, the benefit returned as much as $50 to politically active individuals and $100 to marrieds filing together. But Minnesota taxpayers still can claim contributions they made during the first six months of 2015. They use Form PCR, which has been updated. (See http://www.revenue.state.mn.us/Forms_and_Instructions/pcr_15.pdf .) Be prompt. April 18 is the absolute deadline for this form. No extensions or amendments are allowed.
Reading Tax Credit. This credit was authorized only for the 2014 tax year and is not available for 2015. It was a break to help families with children who showed reading deficiencies and, at the same time, did not qualify for individualized education programs. Parents could take the credit for specialized tutoring or reading-related instruction.
Reporting of Mortgage Insurance Premiums, etc. Welcome to Form M1NC, which flows into Form M1M, which flows into Form M1. State legislators never adopted federal changes made to tax laws during 2015. So, mortgage insurance premiums that are deducted on federal Schedule A are not deductible and must be added back into Minnesota tax forms. Other deductions, exclusions or depreciation amounts from federal returns also are affected, with some involving recalculations to conform to Minnesota’s rules.
Working Family Credit. The credit, which is the Minnesota equivalent of the federal Earned Income Tax Credit, still exists for full-year and part-year Minnesota residents. However, non-resident taxpayers – for example, Wisconsin residents who work in Minnesota – no longer qualify for the credit.
We at EricJohn Ltd. are used to dealing with Minnesota’s year-to-year tax changes, big or small. Let us know if we can help this tax season!