Join      Renew      Advertise      Directory

2017 Minnesota Omnibus Tax Bill - Randy Heller

01/02/2018 11:36 AM | Anonymous

Busy season 2018 is upon us and this season will bring lots of changes.  A new federal tax bill has been passed for 2018.  The State of Minnesota also passed the 2017 Minnesota Omnibus Tax Bill on May 30, 2017.

A few of the individual benefits of the Minnesota tax bill which are effective for 2017 are as follows:

  • A new subtraction, up to $4,500 for married filing joint or $3,500 for single, may be used to offset social security and tier 1 railroad retirement income.  The subtraction is subject to phase out limits.
  • Contributions to a 529 collage savings plan may now qualify for either a subtraction or a credit, but not both. 
  • A subtraction, up to $3,000 for married filing joint or $1,500 for all others, may be used for 529 plan contributions.
  • A tax credit may be claimed equal to the lesser of $500 or 50% of net contributions.  The credit will be phased out with adjusted gross income in excess of $75,000.
  • Minnesota residents may claim a nonrefundable credit up to $500 for student loan payments.
  • Minnesota teachers obtaining a master’s degree may be eligible for a tax credit up to $2,500.
  • A refundable credit may be claimed for taxes paid to Wisconsin.
  • Minnesota nonresidents may need to accelerate installment sales for Minnesota assets or businesses if election is not made and future Minnesota returns are not filed.
  • Minnesota estate exemption will increase $300,000 per year until reaching $3,000,000 in 2020.
  • From 2018 thru 2023 taxpayers may be eligible for a credit for transactions with beginning farmers.
  • Creation of first-time home buyer’s accounts and potential subtraction.

Partnership returns will follow the Federal due date of the 15th day of the third month after year end.

Visit Us:

3325 South Washington Street
Suite B2
Grand Forks, ND 58201

Contact Us: 

 (701) 775-7111
or (877) 637-2727

Connect with us:

Powered by Wild Apricot Membership Software