Minnesota

[Lion]

The Minnesota legislature recently enacted legislation to conform with the December 2008 Internal Revenue Code, including certain bonus depreciation provisions. This legislation will be retroactive to January 1, 2008, pending the governor’s signature.

In reaction to these legislative changes, the Minnesota Department of Revenue has announced that effective April 7, 2009, Minnesota will reject Individual electronically filed returns that include Form M1NC, lines 3-15.

Release 2008.03041 contains these legislative changes for the 1040, 1041, 1065, 1120, and 1120S programs, and is tentatively scheduled to post the evening of Monday, April 6, 2009, to coincide with the Minnesota Department of Revenue’s Individual electronic filing changes.

Affected returns should be recalculated on Release 2008.03041 and submitted after April 6. Scans will be available the week of April 6 to identify affected returns in each system.

Sincerely,

CCH, a Wolters Kluwer business

[Bees Knees]

Good thing Pro Series didn't support form M1NC this year.

[zeros]

T&F Deduction, Educator's Expenses?

Did Minnesota accept the these federal extenders?

[Mike Mac]

You might have some problems Bees

Zeros..The ability to subtract the Federal Tuition & Fees deduction and the Educator Deduction were NOT part of the conformity bill so those will have to be added back to arrive at MN taxable income (as well as the $500 or $1,000 Property Tax increase to the Fed Standard deduction).

Bee's....Proseries released M1NC quite some time ago. They did not get everything qulite right though because, unlike some other forms, it does not pop up to the active form section of the software when data flows to it. Therefore, you can not see that the form contains errors in it when either look at the forms over in the far left column on the forms menu section nor do they show up when you do the final error check. If you physically open the form, and it contains data, you will get an error alert until you go to the bottom of the form and make the adjustments to Fed AGI and Fed Taxable Income to what they would have been of the Tuition & Fees or Educator deduction would not have been taken on the fed return (there could have been some consequences to Sked A). Go to one of the clients you have finished up with that has either of those deductions and pull up the MN M1NC and you will see what I mean.

Mike