Minnesota has made the following changes to the tax laws for the 2024 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 $232,550 ($116,275 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 2024 tax year are as follows:
Single $14,575 Married Filing Joint, or Qualifying Widow(er) $29,150 Married Filing Separately $14,575 Head of Household $21,900 - 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 $232,550 ($116,275 if you are married and filing a separate return). If your adjusted gross income exceeds $1,053,750, you are limited to 20% of your itemized deductions.
What changes were made to exemptions?
The dependent exemption amount is $5,050 for each qualifying dependent in 2024. Your total exemption amount is reduced if your income exceeds certain amounts based on your filing status:
• $232,550 for Single
• $348,850 for Married Filing Jointly or Qualifying Widow(er)
• $174,425 for Married Filing Separately
• $290,700 for Head of Household
Child Tax Credit and Working Family Credit
Beginning with tax year 2024, you may be eligible to claim a Child Tax Credit. You may be eligible to receive $1,750 per qualifying child. The credit is combined with the Working Family Credit and will be reduced when the greater of your earned income or adjusted gross income exceeds $31,090 ($36,880 if you are married and filing a joint return).
Advance Payment of Child Tax Credit
Beginning in 2024, taxpayers can elect to receive advance payments of their 2025 Child Tax Credit. You must be eligible for a child tax credit in 2024 to receive.
Renter's Credit
Beginning with rent paid in tax year 2024, renters can claim a credit by completing Schedule M1RENT, Renter's Credit, with their Minnesota State Return. Previously renter's would complete Form M1PR, Homestead Credit Refund (for Homeowners) and Renter's Property Tax Refund; however, renter's should not complete Form M1PR to claim their Renter's Credit. Additionally, you must provide your Certificate of Rent Paid (CRP) information when completing your return.
To report within the program, please follow this path:
- State Section
- Edit Minnesota State Return
- Credits
- Renter's Credit (Schedule M1Rent)
Net Investment Income Tax
Individuals with net investment income greater than $1,000,000 must file Schedule NIIT, Net Investment Income Tax, with their Minnesota State Return. Net investment income includes, but is not limited to, interest, dividends, capital gains, rental and royalty income, and non-qualified annuities.
Authorization to share information with MNsure
When filing your Minnesota return, you may elect to authorize the Minnesota Department of Revenue to share necessary return information with MNsure for the purpose of contacting you with information about estimated eligibility for free or reduced-cost health insurance.
The information shared includes:
- Name and spouse's name if filing joint return
- Number of people in the household
- Dependent's date of birth
- Address
- Adjusted Gross Income (AGI)
- Telephone Number
This can be located within the Basic Information section of the Minnesota State Return by following this path:
- State Section
- Edit Minnesota State Return
- Basic Information
- "Do you authorize the Minnesota Department of Revenue to share necessary return information with MNSure.."