2017 Minnesota Omnibus Tax Bill - Randy Heller

01/02/2018 11:36 AM | Anonymous member (Administrator)

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.

North Dakota CPA Society
2701 South Columbia Road, Ste D
Grand Forks, ND 58201

Phone: (701) 775-7100 or (877) 637-2727
Email: mail@ndcpas.org

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