In tax year 2019, the Minnesota standard deduction is $24,400 for married taxpayers filing a joint return, $12,200 for single taxpayers, and $18,350 for taxpayers filing as a head of household. The 2018 standard deduction amounts will be as follows: Single or married filing separately: $12,000; Married filing jointly: $24,000; Head of household: $18,000; The additional standard deduction for people who have reached age 65 (or who are blind) is $1,300 for each married taxpayer or $1,600 for unmarried taxpayers. Annual summaries of Minnesota tax law changes enacted during each legislative session. The Minnesota Department of Revenue is granting some flexibility for 2018 income tax filers when it comes to the deductions they opt for on state and federal forms. But Minnesota’s standard deduction of $13,000 for married taxpayers filing jointly hasn’t changed. Read more, Visit our booth at an upcoming trade show. It accomplishes this primarily through its conformity to the increased standard deduction used by the TCJA, and through the following, all first effective for the 2019 tax year: 1. Itemized deductions in Minnesota phase out for taxpayers above a certain income level. An increase in the Social Security subtraction from $4,… The new law is retroactive to the beginning of 2018, so Minnesota taxpayers who filed 2018 state returns based on the old law may have to amend them. Head of household: $9,550, up $200. Not a subscriber? Beginning in tax year 2018, you may claim the Minnesota standard deduction or itemize deductions on your Minnesota income tax return. Research estimates of how state House and Senate bills could affect revenues and the Minnesota tax system. Login to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®. Standard deductions for 2018 Single - $12,000 add $1,600 if age 65 or older If you are a dependent, your Minnesota standard deduction is one of the following, whichever is greater: $1,100 Your earned income plus $350, up to the amount of the single standard deduction plus any qualifying additional standard deduction. File 2016 Tax Return ... Print / Download My Return. $13,000 for married taxpayers filing jointly or surviving spouse; $9,550 for taxpayers filing as head of household; and. While the new Federal standard deduction has jumped up to $12,000 filing single and $24,000 married filing joint, the Minnesota standard deduction is still at $6,500 filing single and $13,000 married filing joint. Heads of household get a standard deduction of $18,650. Taxpayers can take the standard deduction on the federal return and itemize deductions on the Minnesota return. It does so by conforming to the increased federal standard deduction, by increasing the state’s social security subtraction, expanding the working family tax credit, and reducing the second-tier tax rate from 7.05% to 6.8%. In 2019, it increases by $1,650 if you’re single or head of household and by $1,300 if you’re married or a qualifying widow(er). Increased standard deduction – The standard deduction will be $24,400 for married filing joint taxpayers and $12,000 for single taxpayers. 0 Curious about those 2018 tax brackets (with new tax rates!) The Minnesota Department of Revenue is granting some flexibility for 2018 income tax filers when it comes to the deductions they opt for on state and federal forms. IR-2017-204, Dec. 14, 2017 WASHINGTON ― The Internal Revenue Service today issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. According to the department, federal changes made to the standard and itemized deductions by TCJA cannot be addressed through state addition and subtraction modifications for tax year 2018. The Minnesota Department of Revenue has announced the 2019: – adjusted personal income tax brackets; – standard deduction amount; and – personal exemption amount. But remember that this is for 2018 returns (filed in 2019), not 2017 ones filed in 2018. For tax year 2019, brackets will change by 2.419% from tax year 2018. $12,000 for single taxpayers or married people filing separate returns; $18,000 for people filing as head of household; $24,000 for married couples filing jointly; Those higher standard deduction amounts will be in effect for tax years between Dec. 31, 2017, and Dec. 31, 2025, unless Congress acts to extend the change. Your Minnesota taxable income will start with your Federal … One of the last states to act on conforming its state income tax to the 2018 Tax Cuts and Jobs Act (TCJA), Minnesota’s governor signed legislation to do so on May 28, 2019. Head of Household standard deduction will increase to $18,350. Policy statements that provide added interpretation, details, or information about Minnesota tax laws or rules. 2018 Minnesota Tax Tables with 2021 Federal income tax rates, medicare rate, FICA and supporting tax and withholdings calculator. Administrative rules adopted by the Department of Revenue to administer Minnesota tax laws. How much the standard deduction amounts for 2018 went up. How do I claim the Minnesota standard deduction? For 2018 you can take the standard deduction for your Federal return but still itemize for Minnesota. The Department of Revenue has released a revenue notice explaining their position on this issue. For 2018, the standard deduction is nearly double the 2017 amounts. Minnesota has made changes to its state tax tables for 2019. If we sent you a letter, please include the Letter ID number from the top right corner. But Minnesota's standard deduction of $13,000 for married taxpayers filing jointly hasn't changed. Dependents with wage income may claim a standard deduction equal to the amount of their wage income plus $350, up to the standard deduction for single filers ($6,350 in tax year 2017), if this amount is greater than the $1,050 minimum standard deduction. There is also a Minnesota-specific itemized deduction, with provisions generally matching those under the TCJA. Increased standard deduction – The standard deduction will be $24,400 for married filing joint taxpayers and $12,000 for single taxpayers. The notice also notes that the state legislature is prohibited from delegating its power to tax to any outside agency under the Minnesota Constitution. This is a private website that is NOT affiliated with the U.S. government and Internal Revenue Service (IRS). Dependent exemptions: Beginning with the 2019 tax year, Minnesota no longer allows personal exemptions. households. File 2018 Tax Return. The new law is retroactive to the beginning of 2018, so Minnesota taxpayers who filed 2018 state returns based on the old law may have to amend them. Minnesota adopts federal taxable income as the starting point for computing taxable income of individuals. You may claim the Minnesota standard deduction even if you itemized your deductions on your federal income tax return. You may itemize deductions on your Minnesota income tax return even if you claimed the standard deduction on your federal income tax return. Standard and Itemized Deductions. The standard deduction is slated to go up in 2018 as follows: Single filers: $6,500, up $150. During most years, standard deductions go up by small amounts to reflect inflation. Taxpayers who make quarterly payments of estimated tax should use […] COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. Minnesota’s standard deduction amounts are set in state law; the Minnesota amounts are the same as the federal amounts for tax years 2019 to 2025. Head of Household standard deduction will increase to $18,350. The standard deduction, which Minnesota has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction. The additional standard deduction amounts (for age 65 or older, blind, and so forth) remain unchanged. In 2018, individuals filing returns in Minnesota may either: Taxpayers can choose either method to take deductions, regardless of the election made on their 2018 federal income tax return. $350, plus the individual’s earned income. October 27, 2020 by Standard Deduction …$25,100 of deductions, which is a raising from $24,800 in the previous year. Schedule M1UE requires adequate record keeping, as noted in this guide, that may be more time consuming than the benefit of the deduction. Add $1,650 if you were born before January 2, 1955. Version Date: 12/19/2018 1 | Page . Minnesota State Tax Tables 2019 . Other deductions such as tax preparation fees, investment expenses and unreimbursed employee business expenses that aren’t eligible to be deducted on your Federal Schedule A can still be deducted on your Minnesota return. The 2018 standard deduction amounts will be as follows: Single or married filing separately: $12,000; Married filing jointly: $24,000; Head of household: $18,000; The additional standard deduction for people who have reached age 65 (or who are blind) is $1,300 for each married taxpayer or $1,600 for unmarried taxpayers. Minnesota’s nonconformity leads to complex tax filings for 2018. Minnesota will conform to the new higher federal standard deduction. Minnesota enacted its own allowable itemized deductions beginning in 2019. Minnesota Treatment of 2018 Standard and Itemized Deductions According to the department, federal changes made to the standard and itemized deductions by TCJA cannot be addressed through state addition and subtraction modifications for tax year 2018. See page 13 of the MN 2018 Forms and Instructions PDF file here: ... TurboTax will use the standard deduction for Minnesota as … Minnesota Announces Position on 2018 Standard and Itemized Deductions, Save Clients Time with New Collaboration Features, Diagnostics – a Check Audit Warning Light, IFRS Foundation Publishes Educational Material on Going Concern, Lenders with $1B or Less in Assets May Apply for First and Second Draw PPP Loans on Friday, 1/15. Itemized deductions are reduced as your income exceeds $197,850 ($98,925 if you are married and filing a separate return). The standard deduction, which Minnesota has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.Essentially, it translates to $6,500.00 per year of tax-free income for single Minnesota taxpayers, and $13,000.00 for those filing jointly. But Minnesota's standard deduction of $13,000 for married taxpayers filing jointly hasn't changed. Add $1,300 for each spouse who was born before January 2, 1955. About nine out of 10 of taxpayers claim the standard deduction. You may claim the Minnesota standard deduction or itemize your deductions on your Minnesota income tax return. So many Minnesotans, who might have been able to … But Minnesota’s standard deduction of $13,000 for married taxpayers filing jointly hasn’t changed. However, your standard deduction is $24,000, and your itemized deductions need to be more than this amount for itemizing to be worthwhile. The values of these deductions for tax year 2018 are as follows: Complete and file Schedule M1SA to claim itemized deductions on your Minnesota income tax return. 2018 edition. $6,500 for taxpayers who are single or married filing separately. What will be the standard deduction in 2018 for joint returns of people with both over age 65? From exciting social events to unique networking opportunities, the conference provides a wealth of information and best practices to take your firm to the next level. Standard Deduction and Personal Exemption. © 2020 CCH Incorporated and its affiliates. All other elections must be consistent on the taxpayer’s 2018 federal income tax return and their 2018 Minnesota income tax return. For 2019, the state standard deduction matches the federal amount and some separate Minnesota itemized deductions have been established, keeping several items that were eliminated under federal law. Sign up for Standard Specifications for Construction (Spec Book) email updates. See H.F. 5. Dependent Exemption – Minnesota will allow a per-dependent exemption in the amount of $4,250 but eliminates all personal exemptions. Revenue Notice No. If you are age 65 or over, blind or disabled, you can tack on $1,300 to your standard deduction ($1,600 for unmarried taxpayers). Standard deductions were also temporarily increased to: However, Minnesota has not conformed to changes made by TCJA. This prohibition includes the United States Congress. Compare your take home after tax and estimate your tax return online, great for single filers, married filing jointly, head of household and widower Personal exemptions and dependent exemptions will no longer exist. Minnesota Standard Deduction vs. Itemized Deductions. You may claim itemized deductions on your state return, even if you claimed the standard deduction on your federal income tax return. Note: If you are married filing separately and your spouse takes the standard deduction on their Minnesota return, you must also. The standard deduction amounts available to taxpayers on their Minnesota 2018 return are: • Married filing jointly or surviving spouse: $13,000 • Head of household filing: $9,550 Essentially, it translates to $6,500.00 per year of tax-free income for single Minnesota taxpayers, and $13,000.00 for those filing jointly. Adopt federal standard deduction amounts (with separate Minnesota limitations) and federal itemized deductions with certain exceptions Provide a special limited adjustment for 2018, allowing individual income taxpayers to take the standard deduction or make an election to itemize deductions, regardless of the method used for federal income tax purposes Minnesota’s H.F.5 incorporates a number of provisions in response to the Act. 18-01, Minnesota Department of Revenue, September 4, 2018, ¶204-450. 2021 © Standard-Deduction.com. This parallel tax income system requires high … Chiefly among these provisions is the update of Minnesota’s conformity date to the IRC to December 31, 2018, 4 thus conforming to a version of the IRC that includes the provisions of the Act. Here's a peek at 2018 tax brackets, standard deduction amounts and more under tax reform. Exploring trends, content, technology, and new ideas in the global information industry. The personal exemption for 2018 is eliminated. Instead, the state allows an exemption of $4,250 for each qualifying dependent you claim. 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