The standard deduction is slated to go up in 2018 as follows: Single filers: $6,500, up $150. The Minnesota Department of Revenue has announced the 2019: – adjusted personal income tax brackets; – standard deduction amount; and – personal exemption amount. Note: If you are married filing separately and your spouse takes the standard deduction on their Minnesota return, you must also. Head of Household standard deduction will increase to $18,350. What income is taxable and do I need to file? Joint filers: $13,000, up $300. The 2017 enactment of the federal Tax Cuts and Jobs Act (TCJA) made a number of amendments to the IRC, including temporarily reducing personal exemptions to zero. COVID-19 Penalty Relief: You may ask us to cancel or reduce filing or payment penalties if you have a reasonable cause or are negatively affected by the COVID-19 pandemic. In the following table, we provide the most up-to-date data available on state individual income tax rates, brackets, standard deductions, and personal exemptions for both single and joint filers. Head of household: $9,550, up $200. For tax year 2019, Minnesota enacted its own allowable itemized deductions. Heads of household get a standard deduction of $18,650. It accomplishes this primarily through its conformity to the increased standard deduction used by the TCJA, and through the following, all first effective for the 2019 tax year: 1. Questions & Answers. Dependent Exemption – Minnesota will allow a per-dependent exemption in the amount of $4,250 but eliminates all personal exemptions. Your earned income plus $350, up to the amount of the single standard deduction plus any qualifying additional standard deduction. If you are age 65 or over, blind or disabled, you can tack on $1,300 to your standard deduction ($1,600 for unmarried taxpayers). The standard deduction is available to US citizens and aliens who are resident for tax purposes and who are individuals, married persons, and heads of household. under the final tax reform bill? Signs of Potential Tax Evasion or Tax Fraud, Accelerated Recognition of Installment Sale Gains, First-Time Homebuyer Savings Account Addition, Section 179 Addback Example 1 - Sole Proprietor, Section 179 Addback Example 2 - Sole Proprietor, Master's Degree in Teacher's Licensure Field, Gain from the Sale of a Farm: Insolvent Farmer, Alternative Minimum Tax Credit (Schedule M1MTC), Military Service Credit for Deceased Taxpayer, Credit for Military Service in a Combat Zone, Tax Relief for Deceased Active-Duty Military, Household Income for K-12 Education Credit, Senior Citizens Property Tax Deferral Program. Head of Household standard deduction will increase to $18,350. One of the last states to act on conforming its state income tax to the 2018 Tax Cuts and Jobs Act (TCJA), Minnesota’s governor signed legislation to do so on May 28, 2019. In general, H.F. 5 should decrease the Minnesota individual income tax liability of most taxpayers, and is projected to reduce individual income tax revenues by more than $530 million during fiscal year 2020-21. What will be the standard deduction in 2018 for joint returns of people with both over age 65? Minnesota enacted its own allowable itemized deductions beginning in 2019. For tax year 2019, brackets will change by 2.419% from tax year 2018. Minnesota’s standard deduction amounts are set in state law; the Minnesota amounts are the same as the federal amounts for tax years 2019 to 2025. Minnesota’s H.F.5 incorporates a number of provisions in response to the Act. Minnesota State Tax Tables 2019 . The notice also notes that the state legislature is prohibited from delegating its power to tax to any outside agency under the Minnesota Constitution. This is a private website that is NOT affiliated with the U.S. government and Internal Revenue Service (IRS). 63 limitations and restrictions as of December 16, 2016, apply to taxpayers claiming the standard deduction. Learn how we can help you Grow, Manage & Protect your business. All other elections must be consistent on the taxpayer’s 2018 federal income tax return and their 2018 Minnesota income tax return. The standard deduction is partially phased out according to the same rules that govern the partial phase-out of itemized deductions under current Minnesota law. So many Minnesotans, who might have been able to skip itemizing on their state returns, could lose out on tax breaks unless they itemize. The standard deduction: Instead, the state allows an exemption of $4,250 for each qualifying dependent you claim. How much the standard deduction amounts for 2018 went up. Other deductions such as tax preparation fees, investment expenses and unreimbursed employee business expenses that aren’t eligible to be deducted on your Federal Schedule A can still be deducted on your Minnesota return. For 2018 you can take the standard deduction for your Federal return but still itemize for Minnesota. Your standard deduction increases if you’re blind or age 65 or older. $18,000 for taxpayers filing as head of household. How do I claim the Minnesota standard deduction? Minnesota Treatment of 2018 Standard and Itemized Deductions According to the department, federal changes made to the standard and itemized deductions by TCJA cannot be addressed through state addition and subtraction modifications for tax year 2018. Standard Deduction and Personal Exemption. 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