Dayton, Revenue Commissioner says Minnesotans can file - KMSP-TV

TAXES: Minnesotans given go-ahead to file

Posted: Updated:
ST. PAUL, Minn. (KMSP) -

Gov. Mark Dayton and Revenue Commissioner Myron Frans are giving Minnesotans the green light to file their takes now that software providers have updated to reflect the new tax law changes.

On Wednesday morning, Frans said about 1 million Minnesota taxpayers have yet to file. Private software tools like TurboTax should be running smoothly, however, and Frans says now's the time to file.

Frans also said the 1.5 million Minnesotans who've already filed should wait for the state to notify them of any information they may need.

WHAT SHOULD YOU DO?

These changes align Minnesota's tax forms more closely with federal forms. If you properly claimed these benefits on your federal return, they will carry over to your Minnesota return.

The department says taxpayers using tax software on their computers should accept and install updates so they are filing with the most up-to-date software.

If you have not filed your 2013 taxes: Now that software changes have been made, as of April 2, you should be able to file smoothly.

If you already filed for 2013: The state will notify you if you need to do anything else. If you qualify for a new deduction or credit, 1 of 3 things will happen after a review:

1. The state will adjust your return and send a refund and a letter explaining the adjustment.

2. The state will request more information, then use that information to adjust your return.

3. If your return cannot be adjusted, you will get a notice to file an amended return to get the benefits of these changes.

Federal and state income tax returns must be filed by April 15, 2014.

Taxpayers who have changed addresses since their last filing should notify the department so refunds can reach the correct destination.

TAX CREDIT + DEDUCTION CHANGES

Working Family Credit: Boosts the credit to more closely follow the Federal Earned Income Tax Credit. Average $334 benefit for families earning $25,000-$40,000 a year.

Mortgage Insurance Deduction: Homeowners can deduct mortgage insurance premiums from their Minnesota income if their modified adjusted gross income is less than $110,000.

Mortgage Debt Forgiveness: Homeowners whose lender agreed to accept less than they owed in a "short sale" or foreclosure of their home can exclude the amount of debt forgiven by the lender from their Minnesota income.

Deduction for Educator Expenses: K-12 school teachers or school employees who bought classroom supplies with their own money can deduct up to $250 of their purchases.

Higher Education Tuition Deduction: Those who paid tuition and fees to a college, university or other post-secondary school may be able to deduct up to $4,000 of the tuition and fees from their Minnesota income if their modified adjusted gross income is below $80,000 for individual returns or $160,000 for joint returns

Student Loan Interest Deduction: Those who paid student loan interest that could be deducted on their federal tax returns may be able to deduct up to $2,500 of the interest from their Minnesota income if they have modified adjusted gross income below $75,000 for individual returns or $155,000 for joint returns

Education Savings Accounts: Those with a child in grades K-12 who used distributions from a Coverdell Education Savings account to pay for their education can exclude those distributions from their Minnesota income.

National Health Corps Scholarships: Those who received a National Health Service Corps Scholarship program or F. Edward Hebert Armed Forced Health Professions Scholarship and Financial Assistance program may be able to exclude those benefits from their Minnesota income.

Employer-Provided Assistance

- Education: Those whose employer helped pay for certain college or post-secondary training can exclude up to $5,250 of these benefits from Minnesota income.

- Adoption: Those whose employer helped pay for adoption expenses can exclude up to $12,970 of these benefits from their Minnesota income if their modified adjusted gross income is below $234,580.

- Transit: Those who received up to $245 per month of employer provided transit passes and van-pooling benefits can exclude the value of those benefits from their Minnesota income.

Tax-Free Charitable IRA Deductions: Those who are 70½ or older and made a contribution to a qualified charitable organization directly from their IRA can exclude up to $100,000 of IRA distributions from their Minnesota income.

For a list of small business tax cuts, go to http://bit.ly/1m2Bzvw 

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