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Minnesota tax tidbit: federal add-backs

Minnesota flag One of the challenges of filing state income tax returns is figuring out how your state deals with federal law changes. This filing season, Minnesotans need to pay close attention to such differences as they file their state taxes. 

Several widely publicized federal tax breaks that are sure to be used by many Minnesota taxpayers must be added back to their income when they complete their state forms.

If you excluded the first $2,400 of unemployment compensation on your 2009 federal return, warns the Minnesota Department of Revenue, that must be counted as taxable income on Schedule M1M, Income Additions and Subtractions.

Similarly, the North Star State did not adopt Uncle Sam's motor vehicle sales tax deduction, additional standard deduction for real estate taxes or the extension of the increased federal section 179 expensing for tax year 2009.

As with the unemployment benefits, those federal reductions to income are additions to Minnesota earnings.

Sorry about the extra time and calculations, but better to get your return information right the first time so that you don't have to deal with the added hassle of a follow-up from Minnesota tax officials.

Tax trip around the United States: This post is part of our series highlighting tax information from the 50 U.S. states and Washington, D.C. You can read other state tax blurbs at our Complete menu of tasty state tax tidbits.

The State Tax Departments page provides links to official state and District of Columbia revenue Web sites so that you can find out more about your home's tax laws and filing requirements.

As we work through the 2010 tax season, a different state will be featured each day as noted in Don't forget your state taxes! Check back to see what tax tidbit we share about your home.

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It's been a long time since I paid state income taxes. We did so when we lived in Maryland, but none in Florida or Texas. Glad that it's not a major hassle for you. Kudos to the Minnesota tax office for making the filing clear!


I live in MN and the taxes here always add things back in before computing the MN taxes owed. Thankfully our form is so easy to understand that it shouldn't be an issue for anyone.

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