2020 ProSeries/Minnesota Readme

Items addressed in previous releases

• Form M1, Worksheet for Line 4: The multiplier on line F has been changed from 80% to 20%
• Schedule M1NC, line 19: Special allowance for celllulosic biofuel, has been removed
• Schedule M1M, line 4: Federal section 179 addition, has been removed
• Schedule M1NC, line 1: Home mortgage debt cancellation, has been removed
• Schedule M1NC, line 4: Coronavirus-related retirement account distributions, has been removed
• Schedule M1NC, line 5: Disaster-related retirement account withdrawals, has been removed
• Schedule M1NC, line 7: Unemployment compensation excluded from income, has been removed
• Schedule M1NC, line 9: Paycheck Protection Program loan forgiveness, has been removed
• Schedule M1NR, line 14: Federal adjustments from Schedule M1NC, has been updated to reflect changes to Schedule M1NC
• Schedule M1PR, line 5: Additional nontaxable income, has been updated to reflect changes to Schedule M1NC
• Schedule M1SA, line 15 is now allowing 100% of contributions to qualified disasters
• Schedules KFNC, KPINC, KSNC, line 1, Paycheck Protection Program, has been removed
• An exclusion for prior year disaster-related retirement distributions has been added to Schedule M1NC, Line 22 Worksheet
• The adjustment for disaster-related retirement distributions is now being calculated on Schedule M1NC, line 5
• Schedule M1M, line 3 has been updated to include the amount from Bonus Depreciation Addition Smart Worksheet, Step 5
• The Minnesota IRA Deduction Worksheet will no longer be completed if neither the taxpayer nor the spouse is covered by a retirement plan at work and the deduction was not required to be limited based on income on the federal return
• Line 2 of the Minnesota Social Security Income Worksheet will now exclude the amount from Schedule M1NC, line 2 and line 7
• Minnesota has extended the individual income tax filing and payment deadline for tax year 2020 from April 15 to May 17, 2021
• Schedule M1NR, Unemployment compensation and related exclusion for Minnesota column will automatically calculate 0 (zero) for full year nonresident filers
• Schedule M1NR has been updated to incorporate latest change related to unemployment compensation exclusion
• Schedule M1NC has been updated to include unemployment compensation exclusion adjustment
• Schedule M1W has been updated to generate an error if duplicate W-2's are present on the return
• Schedules M1M, M1NC, M1NR, KPI and KS have been updated to the most recent version published by Minnesota Department of Revenue
• The adjustment for coronavirus-related retirement distributions is now being calculated on Schedule M1NC, line 4
• The adjustment for excess deductions of section 67(e) expenses (from Schedule K-1 Estates and Trusts, box 11, code A) is now being included on Schedule M1NC, line 22
• Schedule M1WFC has been updated to no longer generate an error when electing to use prior year earned income for federal EIC
• Schedule M1MA has been updated to the most recent version published by Minnesota Department of Revenue

What's new for ProSeries/Minnesota

The following items are new for tax year 2020:

• Standard Deduction. The standard deduction for tax year 2020 has increased for each filing status: $24,800 for Married filing joint or Qualifying widow(er), $18,650 for Head of household, $12,400 for Single and Married filing separately. If filing status is married filing a separate return, the taxpayer may only claim the standard deduction if the spouse did not itemize deductions. The standard deduction begins to phase out as the income exceeds $197,850 ($98,925 if married filing separately).

• Itemized Deductions. Minnesota enacted its own allowable itemized deductions beginning in 2019. The taxpayer may itemize deductions on the Minnesota income tax return even if the standard deduction was claimed on the federal income tax return. Itemized deductions are reduced if income exceeds $197,850 ($98,925 if married filing separately).

• Dependent Exemptions. Beginning with tax year 2019, exemptions are only allowed for dependents. For tax year 2020, the exemption amount has increased from $4,250 to $4,300 for each qualifying dependent. The total exemption amount is reduced if the income exceeds certain amounts based on filing status: $296,750 for Married filing joint or Qualifying widow(er), $247,300 for Head of household, $197,850 for Single and $148,375 for Married filing separately.

• Angel Investment Credit. The Angel Investment Credit was discontinued for tax year 2020.

• IRC Non-Conformity. Minnesota has not adopted the federal law changes made after December 31, 2018, that affects federal adjusted gross income for tax year 2020. Differences between federal adjusted gross income and Minnesota adjusted gross income are determined on Schedule M1NC, Federal Adjustments.

• Section 179 Conformity. Starting in tax year 2020, the Minnesota addition is no longer required for federal Section 179 expensing claimed on business property that qualifies for federal and state Section 179 expensing.

Forms

All forms and schedules in this version of ProSeries/Minnesota have been approved for filing.

Electronic filing

You can file returns electronically with this version of ProSeries/Minnesota.

A separate product containing Form M1PR, Property Tax Refund and supporting worksheets is available to support electronic filing for 2020. This product is included with the purchase of the Minnesota individual state tax product, but is installed separately.

For a list of forms that can be e-filed, first open a state return, and then go to What's New This Year in Help Center.

End of ReadMe file for ProSeries/Minnesota