Quantcast

What Does New Minnesota Tax Change Mean For You? - Valley News Live - KVLY/KXJB - Fargo/Grand Forks

What Does New Minnesota Tax Change Mean For You?

Posted: Updated:

Hundreds of thousands of Minnesotans can now claim new tax deductions this year, thanks to a multi-million dollar tax relief bill signed into law on March 21. These changes come in the middle of tax filing season so Valley News Live looked in to what it means if you filed your taxes already or when you should file if you haven't yet. 

The new tax law will put more money back into the pockets of middle class families, recent college graduates, college students, educators, low income home owners and businesses.

Minnesotans can claim the new deductions on this year's tax return but the Department of Revenue is telling those who have not filed yet to wait until April 5, when the systems are fully updated. Today, Valley News Live spoke with a tax preparer about what it means for Minnesotans who have already filed.

"I think there saying you have three options. You can amend your taxes, wait and see if Minnesota sends you a letter or you can wait and Minnesota will send you a check if your entitled to the credit," says H&R Block Tax Return Preparer Kathleen Reiniger.

If you amend your taxes, you would basically end up re-filing.

"You would say what you initialized filed, what the change would be and that you want the credit," says Reiniger. 

Minnesota's tax system is more complex than North Dakota's and the new changes should make it simpler for taxpayers. Minnesota's tax code will be similar to the federal government's tax code.

"It definitely should have been done sooner than March. Should have been done sooner like in December," says Reiniger.

Despite the last minute change, experts say taxpayers should not be worried.
 
"If anything it would be a good thing, it's not that you owe extra money... it maybe that you are able to get extra money that Minnesota denied you," say Reiniger.

Half of the tax deductions come from repealing business taxes that were passed in last year's session in an effort to broaden the tax base. The other half come from Minnesota changing their tax code.

Some of the key tax deduction and exemptions effective for tax year 2013:

  • Mortgage insurance premiums deduction
  • Employer-provided adoption assistance exclusion
  • Student loan interest deduction
  • Higher education tuition deduction
  • Educator out-of-pocket expense deduction

Powered by WorldNow
Powered by 

WorldNowAll content © Copyright 2000 - 2014 WorldNow and Valley News Live. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.