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MINNESOTA Department of Revenue
Tax Update
Clarifications and corrections to 2000 Minnesota tax forms and instructions
February 2001 Number 01-1
Individual income tax
M-1 instruction booklet included on line 16b of Form 1040 Form M-1X
or line 12b of Form 1040A that
Page 13 each spouse received from the Line 11 instructions
Under the first paragraph, the Railroad Retirement Board.” The line 11 instructions for amend-
second bullet regarding purchases ing a 1999 or 2000 return is incor-
of required materials, the words “or Step 4 should read: rect. The instructions should read:
school year” should be eliminated. “Subtract line 10 from line 9. If line
“Determine the self-employment 9 is less than line 10, fill in zero.”
Purchases of materials qualify if used income each spouse received that
for summer school classes (which is is included on line 3 of Schedule A corrected Form M-1X is available
outside the regular school year), as SE of Form 1040. Be sure to on our website.
long as the course can be used to subtract the spouse’s portion of
meet graduation requirements. the self-employment tax deduc- Package XM
tion included on line 6 of Schedule
The following pages of the 2000
Page 18, line 28 worksheet SE.”
Package XM are either missing or
The line 28 worksheet does not take incorrect:
The M-1 instructions available on
into consideration the subtraction
our website have been updated. • page 54 — Schedule M-1MTC
limits based on the child’s grade.
instructions
If your client was unable to use all Schedule M-1H • page 77 — Form M-22
of their qualifying expenses for the • page 112 — Schedule EST instruc-
education credit, continue to use the Lines 8 and 9 tions
worksheet. However, be sure to There are two incorrect line refer- • page 221 — Form PE-12
verify that the amount you fill in on ences on Schedule M-1H:
line 28 of Form M-1 does not exceed • The first sentence of line 8 should For the correct information, down-
the subtraction limits. read: “Subtract line 7 from line 3, load the forms and instructions you
and fill in the result.” need from our website.
Page 20, lines 37 and 38 • Line 9 should read: “Subtract line
Step 2 and step 4, used to determine 7 from line 2.” Form 1099-G
each spouse’s earned income for the Incorrect Social Security numbers
marriage credit, are incomplete. A corrected Schedule M-1H is
The 1099-G forms issued in some
available on our website.
Step 2 should read: areas were printed with the correct
name, address and refund amounts,
“Of the total taxable pension Form CRP but with incorrect Social Security
income on lines 15b and 16b of numbers. We have identified these
federal Form 1040 or lines 11b and Renters household income limit
The household income limit men- taxpayers and have issued corrected
12b of Form 1040A, determine the 1099-G forms.
amount each spouse received. tioned in the renter instructions for
You must subtract any income Form CRP is incorrect. The correct
limit is $41,820, rather than $41,810.
Visit our website for the most current forms, schedules and instructions —
www.taxes.state.mn.us
Minnesota Department of Revenue — Mail Station 5510 — St. Paul, MN 55146-5510
Pub. No. 1000850 Phone: Twin Cities 651-296-3781 or toll-free 1-800-652-9094
TTY users: 651-297-2196 or through Minnesota Relay at 1-800-627-3529.
Internet website: www.taxes.state.mn.us
Individual income tax (continued)
TurboTax software amended return, Form M-1X. The Reminder —
one-time subtraction must be Error Rejection Codes (ERC)
TurboTax off-the-shelf software claimed for tax year 2000.
and TurboTax on the Web If an electronically transmitted
To find out more about the one-time return cannot be accepted as filed,
The original version of the TurboTax
subtraction, see Fact Sheets 14 and an ERC is issued by the department.
off-the-shelf software did not
15, both of which can be found on If you received an ERC and you
include in the interview format the
our website. need assistance, call 651-296-2153 or
one-time subtraction available to
1-800-657-3738 and press option 2.
some Minnesotans who contributed
to an IRA, Keogh, SEP or a public Our extended hours are Monday
employee pension plan in the early through Friday, 8:00 a.m. to 8:00 p.m.
1980s. Be sure to update your
software as instructed with your
software or visit www.turbotax.com Taxable income brackets for 2001
and go through the update process. Minnesota income tax brackets adjusted for inflation for tax year 2001 are:
Prior to February 12, 2001, this one- 5.35% 7.05% 7.85%
time subtraction was also missing Married, filing jointly $0—$26,480 $26,480—$105,200 over $105,200
from the TurboTax on the Web, but
Married, filing separately $0—$13,240 $13,240—$ 52,600 over $52,600
has since been corrected.
Head of household $0—$22,300 $22,300—$ 89,610 over $89,610
Please review all the Minnesota
returns you prepared for your Single $0—$18,120 $18,120—$ 59,500 over $59,500
clients using TurboTax software. If
your client qualified, the appropri-
ate amount would have been Business taxes
reported on line 6 or 7 of Schedule
M-1M. The total M-1M subtraction Schedule EST Schedule AMT-T
would then have been carried over Instructions Line 15
to line 34 of Form M-1. Do not use the instructions printed The year mentioned on line 15 is
If a qualifying one-time subtraction on the back of Schedule EST. incorrect. Line 15 should read:
was not included on line 34 of Form “AMT credit carried to 2001.”
For the correct information, down-
M-1, your client must file an
load the EST instructions from our A corrected Schedule AMT-T is
website. available on our website.
MINNESOTA Department of Revenue
St. Paul, MN 55146-7701
Minnesota Tax Update 01-1
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