How do you calculate MN subtractions?

Forum|Forum|2 years ago
March 11, 2024
2 replies
0 views

MN subtractions include the standard deduction and what else?

TurboTax Deluxe Online

JohnW152

There are many subtractions other than standard or itemized deductions, exemptions and the state income tax refund from line 1 of your federal Schedule 1.

See Line 7—Subtractions from line 35 of Schedule M1M and line 21 of Schedule M1MB on page 15 of the Individual Income Tax Forms and Instructions for a comprehensive listing.

sbecchet

I have a 1099-DIV with exempt interest dividends.

A portion of this dividend income can be subtracted from my Minnesota income.

The subtractable portion is interest from bonds related to Minnesota government entities.

I don't see a place in TurboTax enter this subtraction.

Can you help?

KeshaH

Subtractions on the state return are for income items that are taxable on the federal return but not taxable on the state return. Since exempt interest dividends are not taxable on the federal return, there would be no subtraction for the state return.

However, if any of your exempt interest dividends are taxable on the state return you'd see an addition. If any of the exempt interest dividends are from investments in other states, that amount is taxable and will be added to your Minnesota return.