WI - Permanent rules adopted on apportionment and nexus

MN - Additional changes for 2010 tax year discussed

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MN - Additional changes for 2010 tax year discussed

The Minnesota Department of Revenue (DOR) has updated guidance on personal income tax changes for the 2010 tax year to include information on net operating losses and federal health care reform. Minnesota did not adopt the five-year NOL carryback provision enacted by the federal Worker, Homeownership, and Business Assistance Act of 2009. Individuals who choose this federal option are limited on the Minnesota income tax return to a carryback period of up to the two years preceding the loss. For Minnesota purposes, the unused portion of the loss may be carried forward for up to 20 years.

The updated guidance also informs taxpayers that several tax provisions included in the federal Affordable Care Act of 2010 have not been adopted by Minnesota. Therefore, barring a change in Minnesota laws, the following adjustments will need to be made when determining Minnesota taxable income:

-- beginning with tax year 2010, employees and self-employed individuals will need to include in Minnesota taxable income the fair market value of the policy providing health coverage for their adult nondependent children;

-- beginning with tax year 2010, individuals who received employer-provided adoption expenses will need to include in Minnesota taxable income the amount over $12,170, up to a maximum of $1,000 per child; and

-- beginning with tax year 2009, health-care professionals will need to include in Minnesota taxable income any student loan repayment or forgiveness they received from participating in state programs that reward those who work in underserved communities.

Additionally, as previously reported, the Department has already addressed the new "angel" tax credit for small business investments, the new refundable historic structure rehabilitation credit, the expansion of the credit for increasing research activities, and the repeal of the lower-income motor fuels tax credit.

The entire release is available at the state website. What's New for Individuals for Tax Year 2010?, Minnesota Department of Revenue, June 28, 2010