The standard deduction is slated to go up in 2018 as follows: Single filers: $6,500, up $150. An increase in the Social Security subtraction from $4,… $18,000 for taxpayers filing as head of household. Minnesota Standard Deduction vs. Itemized Deductions. Minnesota’s Bookstore closed August 31, 2020. Essentially, it translates to $6,500.00 per year of tax-free income for single Minnesota taxpayers, and $13,000.00 for those filing jointly. If we sent you a letter, please include the Letter ID number from the top right corner. From exciting social events to unique networking opportunities, the conference provides a wealth of information and best practices to take your firm to the next level. How much the standard deduction amounts for 2018 went up. Annual State Standard Deduction: Annual State Exemption Allowance Per Dependent: Is The State Exemption Allowance Subtracted From Pay Or Tax (Pm: The Alternative Minimum Tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax. Increased standard deduction – The standard deduction will be $24,400 for married filing joint taxpayers and $12,000 for single taxpayers. Increased standard deduction – The standard deduction will be $24,400 for married filing joint taxpayers and $12,000 for single taxpayers. Minnesota’s nonconformity leads to complex tax filings for 2018. Here are some deductions you may be able to take on your Minnesota state tax return (whether you itemize or take the standard deduction). 2018 Minnesota Tax Tables with 2021 Federal income tax rates, medicare rate, FICA and supporting tax and withholdings calculator. During most years, standard deductions go up by small amounts to reflect inflation. $1,300 for married taxpayers filing jointly. The federal overhaul nearly doubled the standard deduction to $24,000 for married taxpayers filing jointly, which will eliminate the need for many Americans to itemize their deductions on their federal returns. Under prior Minnesota law, the standard deduction for a married couple filing joint (MFJ) was $13,000; H.F. 5 raises it to $24,400. For tax year 2019, Minnesota enacted its own allowable itemized deductions. IR-2017-204, Dec. 14, 2017 WASHINGTON ― The Internal Revenue Service today issued the 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. The new law is retroactive to the beginning of 2018, so Minnesota taxpayers who filed 2018 state returns based on the old law may have to amend them. Joint filers: $13,000, up $300. The standard deduction is slated to go up in 2018 as follows: Single filers: $6,500, up $150. Increased standard deduction – The standard deduction will be $24,400 for married filing joint taxpayers and $12,000 for single taxpayers. The Minnesota 2018 standard deduction is: The Minnesota 2018 standard deduction for dependents cannot exceed the greater of: The Minnesota 2018 additional standard deduction amounts for blind and/or elderly taxpayers are: Taxpayers should note that this treatment does not apply to any other election made on a federal individual income tax return. Single: $12,200 — Up from $12,000 for 2018. 2018 edition. under the final tax reform bill? Version Date: 12/19/2018 1 | Page . As such, the IRC Sec. See H.F. 5. It does so by conforming to the increased federal standard deduction, by increasing the state’s social security subtraction, expanding the working family tax credit, and reducing the second-tier tax rate from 7.05% to 6.8%. This is a private website that is NOT affiliated with the U.S. government and Internal Revenue Service (IRS). Some states tie their standard deductions and personal exemptions to the federal tax code, while others set their own or offer none at all. However, your standard deduction is $24,000, and your itemized deductions need to be more than this amount for itemizing to be worthwhile. Minnesota Treatment of 2018 Standard and Itemized Deductions According to the department, federal changes made to the standard and itemized deductions by TCJA cannot be addressed through state addition and subtraction modifications for tax year 2018. The values of these deductions for tax year 2018 are as follows: Head of household: $9,550, up $200. Additionally, taxpayers itemizing their deductions must also calculate their deductions as allowed under the IRC as of December 16, 2016. The Department of Revenue has released a revenue notice explaining their position on this issue. The 2018 standard deduction amounts will be as follows: Single or married filing separately: $12,000; Married filing jointly: $24,000; Head of household: $18,000; The additional standard deduction for people who have reached age 65 (or who are blind) is $1,300 for each married taxpayer or $1,600 for unmarried taxpayers. In tax year 2019, the Minnesota standard deduction is $24,400 for married taxpayers filing a joint return, $12,200 for single taxpayers, and $18,350 for taxpayers filing as a head of household. Personal exemptions and dependent exemptions will no longer exist. 576 March 2018. Generally, you will ben- efit more by filing Schedule M1SA if your itemized deductions are more than your standard deduction. Standard and Itemized Deductions. The standard deduction for each filing status for the 2019 tax year has changed slightly from 2018, according to the Internal Revenue Service. In 2019, the standard deduction will be $12,200 for a single filer and $24,400 for a married couple filing jointly. Before the tax reform law, about two-thirds of all taxpayers claimed the standard deduction. Itemized deductions in Minnesota phase out for taxpayers above a certain income level. The standard deduction: The additional standard deduction amounts (for age 65 or older, blind, and so forth) remain unchanged. But Minnesota’s standard deduction of $13,000 for married taxpayers filing jointly hasn’t changed. Itemized Deductions include: Mortgage interest (Form 1098) Property taxes; Mortgage insurance Morgan Scarboro Policy Analyst FISCAL FACT No. Joint filers: $13,000, up $300. 0 For tax year 2019, brackets will change by 2.419% from tax year 2018. $350, plus the individual’s earned income. 2018 Standard Deduction and Personal Exemption; Filing Status Deduction Amount; Single: $12,000: Married Filing Jointly: $24,000: Head of Household: $18,000: Alternative Minimum Tax. So many Minnesotans, who might have been able to … © 2020 CCH Incorporated and its affiliates. Head of household: $9,550, up $200. 2020 © Standard-Deduction.com. $6,500 for taxpayers who are single or married filing separately. The new law is retroactive to the beginning of 2018, so Minnesota taxpayers who filed 2018 state returns based on the old law may have to amend them. For tax year 2019, brackets will change by 2.419% from tax year 2018. Taxpayers are required to make the same elections on their state and federal returns. File 2016 Tax Return ... Print / Download My Return. If you are age 65 or over, blind or disabled, you can tack on $1,300 to your standard deduction ($1,600 for unmarried taxpayers). The standard deduction, which Minnesota has, is a deduction that is available by default to all taxpayers who do not instead choose to file an itemized deduction.Essentially, it translates to $6,500.00 per year of tax-free income for single Minnesota taxpayers, and $13,000.00 for those filing jointly. For married couples, the standard deduction is $24,800 total if filing jointly and $12,400 (each) if filing separately. But remember that this is for 2018 returns (filed in 2019), not 2017 ones filed in 2018. Minnesota Standard Deduction vs. Itemized Deductions. The Minnesota Department of Revenue has announced the 2019: – adjusted personal income tax brackets; – standard deduction amount; and – personal exemption amount. Research estimates of how state House and Senate bills could affect revenues and the Minnesota tax system. Dependent Exemption – Minnesota will allow a per-dependent exemption in the amount of $4,250 but eliminates all personal exemptions. 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