Minnesota to Conform to Federal Disaster Relief Law

Minnesota intends to create and update schedules for individual returns to conform with new federal disaster tax relief law. Congress enacted the Disaster Tax Relief and Airport and Airway Extension Act of 2017 on September 29, 2017. The Department of Revenue has announced that the legislation may affect taxpayers filing their 2017 state personal income tax returns.

Minnesota Conforms to Federal Law

To conform to federal law, the department is:

  • developing a tax year 2017 Schedule M1NC, Federal Adjustments, to reconcile the changes; and
  • changing Schedule M1M, Income Additions and Subtractions.

According to the department, it will post a near final version of Schedule M1NC on December 1, 2017. The final version will be posted on December 15, 2017.

Federal Disaster Tax Relief Law

Federal changes enacted by the legislation include:

  • An enhanced casualty loss deduction for casualties of personal property located in a hurricane zone.
  • Flexibility for distributions from certain retirement accounts for individuals whose primary residence was in a hurricane zone.
  • An enhanced charitable contribution deduction for certain contributions to organizations providing relief to those impacted by the hurricanes.
  • The option to use current or past year earned income for certain federal credits for those whose primary residence was in a hurricane zone.

The full text of the bulletin is available at: https://content.govdelivery.com/accounts/MNREV/bulletins/1c56cbe.

Bulletin, Minnesota Department of Revenue, November 17, 2017

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