The following good news was announced last week by our friends at Minnesota Revenue….
Minnesota lawmakers have passed legislation granting tax relief for some taxpayers by updating Minnesota’s tax code to match the federal code in several areas for tax years 2015 and 2016.
What can taxpayers expect from the department?
To ensure a smooth filing season for taxpayers, the department will prioritize the work and provide instructions to taxpayers who may benefit from the recently passed legislation.
- First, we will make the necessary changes to 2016 income tax forms and instruction so that taxpayers can file the updated 2016 tax returns when income tax filing season opens on January 23, 2017.
- Second, we will process all 2016 individual income tax returns and make adjustments to the 2015 individual returns affected by the mortgage provision.
- Finally, we will review and adjust 2015 tax returns. We will notify taxpayers when we begin this process. Taxpayers should not file an amended 2015 tax return.
What do taxpayers need to do before filing 2016 income tax returns?
You should look for updates to their out-of-the-box software and install the software updates before filing to ensure they have the updated versions when filing their 2016 taxes.
You should use the forms or instructions posted to our website after Friday, January 20, 2017, to ensure they have the updated versions when filing their 2016 taxes.
What do taxpayers need to do if their 2015 income tax returns are affected by this legislation?
If you are affected by changes made to the 2015 tax code, you do not need to do anything unless we notify you. We will review your 2015 income tax return. If you qualify for a new deduction or credit, one of three things will happen after our review:
- We will make the necessary changes to your return, if possible. We will send you a letter explaining the changes and issue a refund.
- We will request (via letter) more information from you. We will use that information to make changes to your return, if possible. We will send you a letter explaining the changes and issue a refund.
- If we cannot make changes to your return, we will notify you that you will need to file an amended return to get the benefits of these tax law changes. Do not amend your return for these new deductions or credits unless we notify you via letter. You (or your tax preparer) may decide to amend your return for other reasons.
No taxpayers will owe additional tax as a result of these changes.
