MN Conformity - NEED to amend?

[AuditorTurnedGood]

Hey All,
Hope everyone's season is going well. Just got an alert on the new late quasi conformity in MN, eliminating the M1NC. Drake stated that some people should amend their returns, eliminate the M1NC and move the additions to line 12 of the M1. Do I actually HAVE to do this on returns I've already filed? Seems pretty pointless, as the bottom line is the same. Wish this state could get its crap together. Thanks!

[Mike Mac]

Info from MN Dept of Rev website

After reading the following from MN Dept of Revenue's website it appears most of us likely would not have too many clients that we'd have to file an amended return for due to our prior inclusion of the Schedule M1NC. Looks like we'd only have to do it if we also filed a Working Family Credit form with those taxes. For me, about the only time one of my clients would take the tuition and fees deduction is if their income is too high for the credit and therefore they would not qualify for the Working Family Credit. All of the teachers I do that take the $250 Educator deduction also have an income too high for the WFC. If our legislative representatives wouldn't have tied the Green Acres property tax debate to this income tax bill, it would have been passed a long time ago.

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Federal tax law changes adopted by Minnesota
for tax year 2008, with exceptions

Legislation enacted April 3, 2009, adopts all of the federal tax provisions enacted after February 13, 2008, with the exception of the federal deduction for educator expenses and the deduction for higher education tuition and fees. The bill eliminates the need for Schedule M1NC, Federal Adjustments, and requires the two federal deductions to be added back to Minnesota taxable income on Schedule M1M, Income Additions and Subtractions, for tax year 2008.

Because the 2008 Minnesota forms and instructions were printed before the state adopted the federal changes, some taxpayers may be required to file amended individual income tax returns.

Taxpayers affected by the recent law changes include those who claimed the tuition and fees deduction and/or the educator expenses deduction on their federal return, and those who included Schedule M1NC when they filed their 2008 Minnesota Form M1, Individual Income Tax Return.

Minnesota forms and schedules affected by the law changes include Schedule M1M, Schedule M1NR, Nonresidents/Part-Year Residents, Schedule M1CD, Child and Dependent Care Credit, Schedule M1ED, K-12 Education Credit. Lines 12 and 29 of Schedule M1M have been updated to reflect the new law changes. The line 5 instructions for Schedules M1CD and M1ED have also been updated. Be sure to use the forms revised April 2009, which are available on the department’s website at 2008 Individual income tax forms and instructions.

Tax software companies and tax preparers have been notified about these changes.

If you have not yet filed your 2008 Form M1 —


Do not complete Schedule M1NC since the schedule is now obsolete.
If you claim the federal educator expenses deduction and/or the college tuition and fees deduction on your federal return (lines 23 and 34 of federal Form 1040 or lines 16 and 19 of Form 1040A), you must add back these deductions on line 12 of Schedule M1M (Rev. 4/09). Disregard line 29 of the schedule.
If you are a part-year resident, a nonresident, claiming the child and dependent care credit or claiming the K-12 education credit, be sure to use Schedules M1NR, M1CD and M1ED revised April 2009, which are available on our website.
If you have filed your 2008 Form M1 and included Schedule M1NC —

If you added back only higher education tuition and fees and/or teacher classroom expenses (lines 1 and 2 of Schedule M1NC), in many cases there is no further action for you to take. However, if you also filed Schedule M1WFC, recalculate your working family credit using the actual amounts from your federal return. If your credit amount has changed, file an amended return, Form M1X.

If you added back tax-free charitable transfers from IRA accounts or made any adjustments other than the deductions for tuition and fees and educator expenses, you must file an amended return, Form M1X.