ATTENTION MINNESOTA: Last week a few Minnesota individual tax changes were signed into law which could affect your 2013 MN State taxes. Per the Department of Revenue’s website, the state will be reviewing any returns that have already been filed to determine if any of the changes apply or if they will need more information from you before issuing any potential refunds. However, since approximately 1.4 million returns have already been filed (according to the State), I have attached their summary of the 10 individual tax cuts so that you have some awareness if you are likely to benefit from any of them. For any of you who file your own taxes and have not done so yet, you may want to check with the software company before finalizing your returns to determine whether they have updated their software to reflect these tax cuts. $49 Million tax cuts for 2013 1.) Working Family Credit- boosts the credit to more closely follow the federal Earned income tax credit. Average $334 benefit for families making $25-$40K/year. 2.) Mortgage Insurance Deduction-Homeowners can deduct mortgage insurance premiums from their MN income if they make less than $110K. 3.) 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 MN income. 4.) 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. 5.) 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 $4K of the tuition and fees from their MN income if their modified adjusted gross income is below $80K for individual returns or $160K for joint returns. 6.) Student Loan Interest- 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 MN income if they have modified adjusted gross income below $75K for individual returns or $155K for joint returns. 7.) Education Savings Account-those with a child in grades K-12 who use distributions from a Coverdell Education Savings account to pay for their education can exclude those distributions from their MN income. 8.) 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 MN income. 9.) 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 MN income. Adoption: Those whose employer helped pay for adoption expenses can exclude up to $12,970 of these benefits from their MN 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 vanpooling benefits can exclude the value of those benefits from their MN income. 10.) Tax-Free IRA Distributions-Those who are 70 ½ or older and made a contribution to a qualified charitable organization directly from their IRA can exclude up to $100K of IRA distributions from their MN income.
Posted on: Tue, 25 Mar 2014 14:26:23 +0000
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