Minnesota has made the following changes to the tax laws for the 2019 tax year:
- The standard deduction is increased for each filing status. If you are married and filing a separate return, you may only claim the standard deduction if your spouse did not itemize deductions.
The standard deductions for the 2019 tax year are as follows:
Single $12,200 Married Filing Joint, or Qualifying Widow(er) $24,400 Married Filing Separately $12,200 Head of Household $18,350
- Minnesota enacted its own allowable itemized deductions beginning in 2019. You may itemize deductions on your Minnesota income tax return even if you claimed the standard deduction on your federal income tax return. Itemized deductions are reduced as your income exceeds $194,650 ($97,325 if you are married and filing a separate return).
Beginning for the 2019 tax year, the exemption for yourself and spouse (if filing a MFJ return) have been removed. Exemptions are now only allowed for qualifying dependents.
- Minnesota law expanded eligibility for the Minnesota Working Family Credit. In prior years, you must have been eligible to receive the federal Earned Income Tax Credit (EITC) to receive the Minnesota Working Family Credit. Beginning with tax year 2019, you may be eligible for the credit if you are between the ages of 21 and 64 with no qualifying children or have income that exceeds the limitations of federal EITC.
- The Angel Investment Credit was re-enacted in 2019. You may apply for the credit through the Minnesota Department of Employment and Economic Development (DEED) for investments into certain small businesses. You will receive a certificate from DEED that you may use to claim the credit within the program.
Also, beginning in 2020, the Minnesota Department of Revenue will only deposit up to five Minnesota individual income tax refunds into a single bank account. Any additional refunds will be issued as a paper check.