Minnesota has made the following changes to the tax laws for the 2021 tax year:
What changes were made to deductions?
- The standard deduction is increased for each filing status; however, it is reduced, if your income exceeds $199,850 ($99,925 if you are married and filing a separate return). 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 2021 tax year are as follows:
Single $12,525 Married Filing Joint, or Qualifying Widow(er) $25,050 Married Filing Separately $12,525 Head of Household $18,800
- 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 $199,850 ($99,925 if you are married and filing a separate return).
What changes were made to exemptions?
The dependent exemption amount is $4,350 for each qualifying dependent in 2021. Your total exemption amount is reduced if your income
exceeds certain amounts based on your filing status:
• $199,850 for Single
• $299,750 for Married Filing Jointly or Qualifying Widow(er)
• $149,875 for Married Filing Separately
• $249,800 for Head of Household