Question

Problem with 2023 Minnesota Tax

Forum|Forum|2 years ago
April 12, 2024
1 reply
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I completed my taxes and went to efile federal and MN tax. The fed worked fine but the state rejected my return saying that:

Schedule M1M: the sum of line 1 and line 2 cannot be greater than:

line 2a on Form 1040

When I view the M1M form it has 5597. When I select "Data Source" it says this is the sum of two Schedule B worksheets, both of which contain 0, and my K-1 form which has 5401.

I have uploaded diagnostic data with token id 1236333.

--Bryan Fredrick

DMarkM1

You have inadvertently entered the state/municipal bond interest for bonds outside of MN twice. You entered $5401 from the K1 which went to line 2a on your form 1040. You also entered an amount $5597 on MN Form KF for municipal bond interest outside of MN. These two were added together and thus exceed the line 2a amount. The Form M1M line 1amount is supposed to be an addback of the any federally tax exempt interest that MN taxes because it is on bonds outside of MN.

Since there does not appear to be any other amounts on your MN KF you do not need to enter that form in your MN return.

Instead in the federal "Wages & Income" section adjust the federal K1 box 14 code A amount to match the MN KF line 1.

Delete the form KF or at least zero the line 1 amount.

If you have already filed your federal return this may show as an override; that's okay its a non-taxable adjustment there and you are not re-filing the federal return. That will however make the MN return correct.

You should be able to complete filing.

@bfredri

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