How do I get rid of the MN Marriage Credit that TurboTax erroneously gives me?

Forum|Forum|1 year ago
March 7, 2025
1 reply
0 views

We have non-taxable Medicaid Waiver payments, so we don't qualify.

DawnC

Employee

You can delete Schedule M1MA to remove the Marriage Credit. You can also go back through the state interview. You may not need to delete it, see below. I don't see where having non-taxable income would disqualify you. 2024 MN Statute

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

To qualify for this credit, all of these must be true:

You are married and filing a joint return
You and your spouse have taxable earned income, taxable pensions, or taxable Social Security income
Your joint taxable income is at least $47,000
The income of the lesser-earning spouse is at least $30,000

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

prohmannAuthor

TurboTax Online will not let me remove the MN Marriage Credit. I tried deleting the M1MA form on TurboTax, and it reappears. I downloaded the M1MA form and instructions from the MN Dept. of Revenue, and it explicitly states that Medicaid waiver payments excluded from adjusted gross income should not be included on M1MA. Why is TurboTax forcing me to take this credit? The TurboTax state interview addresses the other income exceptions (military pay, railroad benefits), but skips the non-taxable Medicaid waiver payments, which seems to simply have been overlooked by TurboTax. Can this please be fixed? I'm stuck until this is resolved. Surely there must be other Minnesotans in my situation as well.....

DMarkM1

It appears TurboTax is calculating the MN Marriage Credit correctly. Line 7 on the MN form M1MA is the "Joint Taxable Income" piece of the calculation. That number excludes the federal non-taxable Medicaid Waiver Payments since it is derived from federal adjusted gross income (which excluded those payments). The other piece to the credit calculation is the "Earned" income of the lowest earning spouse on line 6 of the MN form M1MA. The Medicaid Waiver payment is earned income and would be in that part of the formula.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"