Late last night I read the proposed MN federal tax conformity bill and thought perhaps I was reading it wrong because the legislatures didn't have any of the common things in the conformity provisions that we mostly run across (the extra $1,000 standard deduct for prop tax, the tuitition deduction, the $250 educator deduct). This evening the below blurb was published on the MN Legislative webpage. Looks like they are trying to pat themselves on the back for something that will only help a minority of our clients!!
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Tax timing is everything Published (2/3/2009)
With time running out to make changes to the state’s tax law for the current filing season, Rep. Ann Lenczewski (DFL-Bloomington) wants to make sure Minnesota conforms to most of the federal changes enacted since last February.
“(HF392) will keep people from having to file amended tax returns if this bill is passed later,” Lenczewski told the House Taxes Committee. “The timing only benefits the taxpayer.” Approved by the committee, it now awaits action by the House Ways and Means Committee.
A companion, SF252, sponsored by Sen. Tom Bakk (DFL-Cook), awaits action by the Senate Taxes Committee.
Some of the changes Minnesota would conform with include:
• counting nontaxable combat pay as earned income for members of the military for the purposes of claiming the earned income credit and working family credit;
• an extension of the special rule for contribution of conservation property by qualified farmers and ranchers;
• provision of preferential tax treatment within the Midwestern Disaster Relief Area and within other federally designated disaster areas; and
• changes in requirements for employer-sponsored group health plans to qualify for the employee income exclusion.
++++++++++++++++++++++++++++++++++++++++++++++++++ ++++++++++
Tax timing is everything Published (2/3/2009)
With time running out to make changes to the state’s tax law for the current filing season, Rep. Ann Lenczewski (DFL-Bloomington) wants to make sure Minnesota conforms to most of the federal changes enacted since last February.
“(HF392) will keep people from having to file amended tax returns if this bill is passed later,” Lenczewski told the House Taxes Committee. “The timing only benefits the taxpayer.” Approved by the committee, it now awaits action by the House Ways and Means Committee.
A companion, SF252, sponsored by Sen. Tom Bakk (DFL-Cook), awaits action by the Senate Taxes Committee.
Some of the changes Minnesota would conform with include:
• counting nontaxable combat pay as earned income for members of the military for the purposes of claiming the earned income credit and working family credit;
• an extension of the special rule for contribution of conservation property by qualified farmers and ranchers;
• provision of preferential tax treatment within the Midwestern Disaster Relief Area and within other federally designated disaster areas; and
• changes in requirements for employer-sponsored group health plans to qualify for the employee income exclusion.