Form M1M Fillable 2013 Income Additions and Subtractions (onscreen version)
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1 Line 6 of your 2008 Schedule M1M 1 10 Net operating loss generated for tax year 2010 (line 25 Schedule A of 11 Subtract step 10 from step 9 11 12 Multiply step 11 by 20% ( 20) 12 13 Line 6 of your 2011 Schedule M1M 13 14 Net operating loss generated for tax year 2011 (line 25 Schedule A of 15 Subtract step 14 from step 13 15 16 Multiply step 15 by 20% ( 20) 16 17 Line 6 of your 2012 Schedule M1M 17 18 Net operating loss generated for tax year 2012 (line 25 Schedule A of 19 Subtract step 18 from step 17 19 2 Net operating loss generated for tax year 2008 (line 25 Schedule A of 20 Multiply step 19 by 20% ( 20) 20 21 Total of any bonus depreciation subtraction amounts you received 22 Add steps 4 8 12 16 20 and 21 3 Subtract step 2 from step 1 (if zero or less enter 0) 3 4 Multiply step 3 by 20% ( 20) 4 5 Line 3 of your 2009 Schedule M1M 5 6 Net operating loss generated for tax year 2009 (line 25 Schedule A of 7 Subtract step 6 from step 5 (if zero or less enter 0) 7 8 Multiply step 7 by 20% ( 20) 8 9 Line 3 of your 2010 Schedule M1M 9 a local government (such as a county or a state other than Minnesota and age 65 or older by the end of 2013 or be your child adopted child stepchild Enter line 10 of federal Form 4562 on line 10 of your Minnesota Form 4562 Enter the amount from line 2 of federal Form 4562 on line 2 of the Minnesota Form 4562 Enter the information from lines 6 and 7 of federal Form 4562 on lines 6 and 7 of your Minnesota Federally funded state active service includes gains from the sale of an ownership gains from the sale or exchange of real have attended a public private or home have been in grades K 12 during 2013; Head of household: $222 700 If 95 percent or more of a federally If less than 95 percent of the federally income for renting real or tangible income from operating a qualified business Is step 4 equal to or less than $122 500 ($61 250 if married filing separately)? Married filing jointly or qualifying widow(er): $267 200 Married filing separately: $133 600 No Enter amount from step 1 on step 7 and continue to step 8 permanently and totally disabled and Recalculate lines 4 5 8 9 11 and 12 of your Minnesota Form 4562 The result on line 12 of received a federal bonus depreciation reported 80 percent of the federal Single: $178 150 State active service includes natural disaster Subtract $1 800 000 from line 3 of federal Form 4562 and enter the result on line 3 of your Subtract $475 000 from line 1 of federal Form 4562 and enter the result on line 1 of your Minnesota Training includes annual training and you applied the proceeds from the sale you included the gain from the sale in you owned and operated the farm; your debts were greater than the fair $133 600 for married filing separate) you $200 000 or if you elected more than $25 000 in section 179 expensing you must (line 5 of Schedule KPI) or as a shareholder (line 5 of Schedule KS) (other than from the performance of (referred to as Minnesota Form 4562 on (Schedule M1R) * If bonus depreciation included in step 1 or 2 generated a loss in an activity that cannot be deducted 1 Add line 14 and line 25 of your federal Form 4562* 1 Amount from line 12 from your federal Form 4562 1 Amount of your debts immediately before the sale 1 Bonus depreciation from 2001 through 2005 2008 2009 2010 2011 or 2012 1 Determine your total allowable 1 Foreign taxes paid from federal Form 1116 line 9 1 Multiply the number in box 6d of federal Form 1040 or 1040A by $3 900 1 Qualifying tuition expenses 10 Subtract step 8 from step 9 Enter the result here and on 1040 or Form 1040A add the interest you 1040 or line 18 of Form 1040A you must 1040 or line 22 of Form 1040A If you were required to file Schedule M1NC 1040 you must add back 80 percent of the 16 will be added to your taxable income 179 expensing on your 2008 through 2 Amount of debt forgiveness that you were permitted to exclude 2 Enter your Minnesota adjusted gross income (from line 37 of federal Form 2 Federal foreign tax credit from Form 1116 line 22 for the 2 Line 12 of your Minnesota Form 4562 2 Qualifying computer expenses in excess of $200 up to a maximum of $200 2 The first $500 of contributions 2 Total of bonus depreciation amounts passed through to you as a partner 2 Total suspended loss from activity remaining after 2012 2001 through 2005 2008 2009 2010 2011 2008 federal Form 1045) Enter as a positive number 2 2009 (WHBA) Under this Act taxpayers 2009 federal Form 1045) Enter as a positive number 6 2010 federal Form 1045) Enter as a positive number 10 2011 federal Form 1045) Enter as a positive number 14 2012 federal Form 1045) Enter as a positive number 18 2012 Schedule M1M subtract 20 percent 2013 Schedule M1M Instructions 3 Add steps 1 and 2 3 Enter the amount provided for your filing status: 3 Line 15 of Schedule M1ED 3 Subtract step 2 from step 1 3 Subtract step 2 from step 1 3 Subtract step 2 from step 1 (if a negative amount enter zero) 3 Subtract step 2 from step 1(if zero or less enter 0) 37 will be subtracted from your taxable 4 Fair market value of your assets immediately before the sale 4 Line 18 of Schedule M1ED 4 Multiply step 3 by 50% ( 50) 4 Multiply step 3 by 80% ( 80) 4 Multiply step 3 by 80% ( 80) Enter here and on Schedule M1M line 7 4 Subtract step 3 from step 2 4 Tax paid to a subnational level of a foreign country other than 4972 You must include a copy of federal 5 Divide step 4 by $2 500 ($1 250 if married filing separately) 5 Multiply step 4 by 1 333 5 Step 3 or step 4 whichever is less 5 Subtract step 4 from step 3 5 Total of the 80% bonus depreciation addition passed through 5 Total of the 80% federal bonus depreciation addition passed through 50 percent of your total contributions for 6 Add steps 4 and 5 Enter here and on Schedule M1M line 12 6 Add steps 4 and 5 Enter here and on Schedule M1M line 6 6 Gain from the sale included on line 37 of Form 1040 6 Multiply step 5 by 2% ( 02) Enter the result as a decimal 6 Subtract step 5 from step 3 7 Add steps 1 2 and 6 7 Multiply step 1 by step 6 7 Step 5 or step 6 whichever is less 8 Subtract step 7 from step 1 9 Enter your federal exemption amount (from line 42 of Form 1040 a foreign country other than Canada you a human organ to another person you a joint return) or a dependent donated able to subtract qualified expenses from add back on your state return 80 percent add back the federal NOL amount as a Additions Adjustment Affairs AGR income or if you receive civilian agreement as restitution or as an amount agreements with Michigan and North Dakota airport security duty and active allowable contributions you will need allowed to deduct on your federal return Also enter this amount on Schedule M1M line 30 Also enter this amount on Schedule M1M line 32 Also include any net U S Government American Indians Living on an AmeriCorps program you can subtract amount on line 8b of federal Form 1040 amount you can subtract amount you need to add back for Minnesota amount you received after leaving the amounts from your federal Schedule K 1 amounts on line 10 amounts will be reported on the Schedule an NOL generated in 2008 or 2009 For and 17 of federal Schedule A and Business Assistance Act of and certain types of qualifying active and educational software is $200 per family and enter $0 on step 10 and grade at the time the expenses were and other expenses deducted on your and Sallie Mae bonds as well and your only Minnesota source income Another State any lost wages net of sick pay due to the any way you choose are a partner shareholder or beneficiary the are allowed to carryback 3 4 or 5 years are required to add back the amounts are shown on the Schedule KPI KS or KF as a beneficiary of an estate or trust (from line 12 of Schedule KF) 21 as an individual as a partner of a as any dividends paid to you by mutual at the entity s ordinary income or net rental attributable to the award award such as tuition reimbursements or be taxable because you used them to claim the credit before the sale; Beneficiary of a Trust Board in 2013 you can subtract Bond Obligations bonus depreciation as an addition to bonus depreciation to your taxable income Building Zone (JOBZ) may be able to Business Assistance Act of 2009 (WHBA) business debt which you elected to defer business located in a zone; by Minnesota all of the federally tax by Minnesota Other Than From U S by non Minnesota bonds must be came from bonds issued by Minnesota Canada on income you received while a Minnesota resident Capital Gain Portion of a Lump Sum carryback period of two years preceding carrying forward for 2013 for Minnesota Charitable Contributions over $500 charitable contributions you would check the chart in the M1 instructions child in grades K through 6 and $2 500 child must: child s K 12 education you may be city) in a state other than Minnesota claim based on your income taxable to claim both a credit and a subtraction claim the section 179 expensing for federal claimed the deduction in 2013 you must complete and include Schedule Complete and include Schedule JOBZ complete and include Schedule M1W Complete steps 3 6 if on Schedule M1ED line 17 is less than line 16 Complete the following steps to determine Continued Continued contract for deed or lien on the credit (Form M1 line 27) and you cannot credit A subnational level is the equivalent deducted on that schedule rather than the Depreciation depreciation as an addition The bonus depreciation is treated as the last suspended loss allowed depreciation in those years see Worksheet Determine line 7 of Schedule M1M by completing the following steps: determining personal exemptions under did not add back 80 percent of the bonus did not use to claim a federal foreign tax discharge in Minnesota taxable income in Distribution From a Qualified Retirement dividends on line 3 of Form M1 To determine Do not include expenses that are attributable Do not include interest or dividends attributable Do not include pay received as a member Do not include the stipend received while do not qualify $500 don t qualify for this subtraction drill weekends duty for special work (ADSW) education expenses on Schedule M1ED determine line 18 of Schedule M1M by completing the education expenses Qualifying expenses eligible to take the reciprocity subtraction emergency response and missing Enter here and on line 19 Enter here and on line 20 of Schedule M1M 22 enter the amount from Schedule M1NC line 16 or 17) Enter the result from step 7 up to the maximum subtraction amount per child on Schedule Enter your qualifying education expenses exceeds the applicable threshold ($267 200 exempt interest dividend from that fund Exemptions Expenses expenses An organ is all or part of a liver expenses deducted on Schedule A Enter expenses for travel and lodging and for expenses If you claimed a federal credit for expenses or $10 000 whichever is less Expenses Relating to Income Not Taxed expenses that do not qualify for the credit extent that the income would otherwise Fact Sheet #13 U S Government Interest federal active duty Federal Active Duty Military Pay Federal Bonus Depreciation Addition Federal Bonus Depreciation Subtraction federal Form 4562 and the following modifications: federal purposes any remaining NOL federal return relating to this income federal return you may be able subtract Federal Section 179 Expensing federally in 2009 or 2010 and included the Federally Tax Exempt Dividends from federally taxable disability income you file Form MWR each year with Fines Fees and Penalties Deducted on following steps: for a student loan and you deducted the For additional information see the For complete information on how to determine for each child in grades 7 through 12 for federal and for state tax purposes for Line 12 on page 3 of these instructions for Line 19 on this page to determine the for Line 20 on the next page for married filing joint $222 700 for head for qualified property on federal Form for Service in an AmeriCorps Form 1040 that are attributable to income Form 4562 Form 4562 However if you have section 179 expensing from a flow through entity Form 4972 when you file your return form 8900 enter the expenses you were not Form M1 or Form MWR and a copy of your home forward go to our website at Freddie Mac bonds from U S bonds For information on how from your income when you completed your Form 1040 funds that are attributable to such bonds gain election on federal Form 4972 enter Gain From the Sale of Farm Property generated by bonus depreciation and you government in 2013 for service in the grandchild or foster child who lived Guard and Reserves are allowed a subtraction have been able to enter on lines 16 have included on line 8b of federal Form higher whole number (Example: Increase 0 0004 to 1) identified in a court order or settlement If during the year your total investment If in 2013 you purchased educational If the result is not a whole number increase it to the next If while living you your spouse (if filing if you (or your spouse if filing a joint If you are a member of an American If you are a Minnesota resident who is a If you are claiming a suspended loss from If you are eligible to subtract reservation If you chose the special depreciation allowance If you chose this federal option you are If you claimed bonus depreciation as an addition on your 2008 Form M1: If you claimed bonus depreciation as an addition on your 2009 Form M1: If you claimed bonus depreciation as an addition on your 2010 Form M1: If you claimed bonus depreciation as an addition on your 2011 Form M1: If you claimed bonus depreciation as an addition on your 2012 Form M1: If you completed federal Form 4562 to If you deducted expenses on Schedule A of If you did not itemize deductions and If you had an addition for increased section If you included in this year s federal If you included or should have included an If you meet all of the eligibility requirements If you paid taxes to a subnational level of If you qualify for the K 12 education If you qualify for the K 12 education credit (Form M1 line 27) and you cannot use all of your If you received a post service education If you received a qualifying lump sum distribution If you received a subtraction in 2013 from an estate or trust: If you received interest from a government If you received JOBZ income as a partner If you received pay for federal active duty If you received unemployment sick pay or If your education award was used to pay If your household income is less than the If your Minnesota adjusted gross income in 2012 and you chose the capital in 2013 (e g a passive activity loss or a loss in excess of basis) you may reduce step 1 or 2 by in a zone; In addition to the above requirements in equal parts over the next five years in qualifying property was more than in the future on wages covered by reciprocity in the M1 instructions You must also Include any National Guard and Reservist Include federally taxable interest you Include your pro rata share of income taxes included on line 3 income income Income Additions and Subtractions income from reacquisition of income if you: income in 2013 If you did not receive income on your 2008 through 2012 Income Taxes Paid to a Subnational income This amount if any will be provided Indian Reservation Indian tribe living and working on the Individuals who invest in or operate a information instructions for Form M1 line 27 in the instructions: interest and dividends you received as a interest dividends from a mutual fund you Interest earned on certain federal obligations Interest From Municipal Bonds of Another interest in a qualified business is $10 000 or more you are subject to is federally taxable is federally taxable but exempt from is wages covered under reciprocity from issued under Title 32 and you are receiving JOBZ Subtractions JOBZ Tax Benefits if in 2013 you received: K 12 Education Expense Subtraction KPI KS or KF you received from the entity Level of a Foreign Country limited on your Minnesota return to a limits for the K 12 education credit (see Line 10 Line 11 Line 12 Line 13 Line 14 Line 17 Line 18 Line 19 line 19 of Schedule M1M Line 20 Line 21 Line 22 Line 23 Line 24 line 24 of this schedule Line 25 Line 26 Line 27 Line 29 Line 3 line 3 of Schedule M1M Line 30 Line 31 Line 32 Line 33 Line 34 line 34 and any amount to carry Line 35 Line 36 line 37 of federal Form 1040; and Line 4 Line 5 Line 6 Line 7 Line 8 Line Instructions M1 and Schedule M1NR You are not M1 instruction booklet) first complete M1 instructions M1M 1 M1M 2 M1M 3 M1M 4 M1M 5 M1M 6 M1M line 18 M1R Age 65 or Older/Disabled Subtraction market value of your assets immediately marrow material or services for your qualifying may be able to subtract the amount you may be able to subtract your qualified may be used for the subtraction You cannot may have to include some or all of these member enter your reservation source income member of the United States or United Members of the Minnesota National members who have been called up to Minnesota Minnesota did not adopt the provisions Minnesota Form 4562 Minnesota Form 4562 cannot be more than line 1 of that form Minnesota has income tax reciprocity Minnesota tax Minnesota tax on that income File Form must be included on line 3 mutual fund came from bonds issued Mutual Funds Investing in Bonds of National Guard Members Reservists National Service Program Nations armed forces enter the military need for you to complete Schedule JOBZ Net Interest From U S Bonds Net Operating Loss (NOL) Carryover Net Operating Loss (NOL) from 2008 New for tax year 2013 Minnesota allows a next page not taxed by Minnesota (income reported not used for the credit and any tuition of a state of the United States See of an S corporation or a beneficiary of a of Form 1040 and the instructions for of household; $178 150 for single and of Indebtedness Income of law or the investigation of any potential of qualifying education expenses of the amount withheld Place an X in Of the amount you included or should of the difference between the expensing allowed of the National Guard if your orders were of the property to paying off the mortgage of the total on your 2013 return of the Worker Homeownership and on line 18 Also enter each child s name on line 25 to the extent the income On line 34 enter the amount you are on lines 23 through 28 of Schedule M1M) on Schedule M1ED complete Worksheet on Schedule M1M Do not include your on the next page on the same expenses on the Schedule KPI KS or KF you only the portion of the dividend generated or 2009 or 2012 on your federal return that was or 26 of Form 1040A) or as a beneficiary of a trust If you or contact the department or Form 1040A for federally tax exempt or lines 9 and 10 of or Permanently and Totally Disabled or tangible personal property used by a or trust that were deducted in arriving Organ Donor paid by the partnership S corporation estate paid to come into compliance with the law pancreas kidney intestine lung or bone partner of a partnership a shareholder partnership as a shareholder of an S corporation pay from the Department of Military pay you received for federal active duty to person searches personal property used by a qualified personal service income on column B of personal services covered under reciprocity) Phaseout of Personal and Dependent positive number on line 14 Post Service Education Awards Received prior federal law See Worksheet for Line 3 program property property in 2013 and: purchases of personal computer hardware purposes purposes See Worksheet for Line 7 on the qualified business in a Job Opportunity qualified business located in a zone; or Qualified expenses are your unreimbursed qualify for the credit also qualify for the qualify only for the subtraction For examples railroad maintenance expenses on federal Railroad Retirement Board Benefits Recalculate line 12 of your Minnesota Form 4562 using the same information from your Received by Residents received federally taxable disability received from municipal bonds issued by: received from the entity Do not include received from U S bonds bills notes Reciprocity applies only to personal Reciprocity Income reduce your subtraction by the interest reduced by any related investment interest regulatory body as a result of a violation report this amount on line 26 instead of requirements reservation of which you are an enrolled retirement benefits from the Railroad Retirement return) are: return) meet the age or disability requirement salaries tips commissions fees and bonuses savings bonds and certificates of indebtedness Schedule M1ED K 12 Education Credit Schedule M1NR Schedule M1SA Schedule M1SA include the expenses you school in Minnesota Iowa North Dakota Section 179 Expensing Subtraction See Income Tax Fact Sheet #8 K 12 Education see the M1 instruction booklet See Worksheet for Line 32 on this page See Worksheet for Line 6 on the next page service income which includes wages service within Minnesota services or required materials during the Shareholder of an S Corporation or a shareholder or beneficiary these amounts source income you must apportion any source not listed see Income Tax South Dakota or Wisconsin State Income Taxes Passed Through State or its Governmental Units state tax return student loan interest on line 33 of Form student loan payments from the federal subnational level of a foreign country other than Canada subtract certain types of income to the Subtraction and Credit for more subtraction for certain railroad maintenance Subtraction for Persons 65 or Older Subtraction for Prior Addback of Reacquisition Subtraction for Railroad Maintenance subtraction However certain expenses subtraction in 2013 from an estate or Subtraction Limits Subtractions Suspended Loss From Bonus tax exempt dividend from a mutual fund tax exempt interest dividend from a tax purposes you must complete lines 1 taxable for pay received for training taxable income any discharge of indebtedness taxable income If you are required to file taxable income On line 33 fill in the than half of the year; that was not added back on your Form M1 that was not fully absorbed in the carryback that would have been phased out when the activity In a future year when the 2013 suspended loss is allowed you must include the bonus the amount from line 1 of Form M1 on the amount of loss not allowed from the activity for 2013 up to the bonus depreciation claimed by the amount to include follow these the amount you included in your federal The amounts entered on lines 17 through The amounts you enter on lines 1 through the box to indicate the state of which you the capital gain from line 6 of federal Form the extent the income is federally taxable the instructions for federal Schedule A the loss The maximum amount of education expenses The maximum subtraction allowed for The Minnesota Legislature did not adopt the prior year enter that amount on line the provisions of the Worker Homeownership The types of education expenses that the worksheet for line 7) to determine the the year over $500 To determine your these amounts from your federal taxable this amount on line 2 of Form M1 through 12 on a separate federal Form 4562 to a government entity or nongovernment To avoid having Minnesota tax withheld to claim the credit for your qualifying to determine if you meet the income To determine the amount see Worksheet to Ginnie Mae Fannie Mae or to interest or mutual fund dividends to report these expenses see line 17 To subtract your education expenses the to the extent the income is federally to you as a beneficiary (from line 4 of Schedule KF) to you as a beneficiary (from line 5 of Schedule KF) to You as a Partner of a Partnership a Total subtraction transplantation The maximum amount trust up to $200 among your children up to 20 years beginning in 2010 If you use all of your education expenses use Schedule M1M to get a refund use the respective amounts from line 4 of Schedule KPI or line 4 of Schedule KS instead of violation of law Do not include amounts were a resident during the year and enter were deducted as business expenses paid When to complete Schedule M1M: If When to complete Schedule M1NR: If When you file Form M1 follow the steps which Minnesota income tax was withheld with you in the United States for more working family or child care credit you working in the program Worksheet for Line 12 Worksheet for Line 18 Worksheet for Line 20 Worksheet for Line 3 Worksheet for Line 30 Worksheet for Line 30 on this page Worksheet for Line 32 Worksheet for Line 6 Worksheet for Line 7 www revenue state mn us year to help your child s K 12 education years can be carried forward for Yes Continue with step 5 If the result is negative skip steps 5 through 9 you are a resident of a reciprocity state You can reduce your taxable income You can reduce your taxable income if You may be eligible to reduce your taxable You may have received the addition or subtraction You may split qualifying computer expenses you may subtract is $1 625 for each you may subtract is your actual qualified You may subtract the amount of the addition You must add fines fees and penalties that you must add those expenses to your you must have purchased educational you received a gain from the sale of farm you received from the entity There is no you took the standard deduction on your your employer your federal adjusted gross income on Your Federal Return your gross income assignable to Minnesota your taxable income regardless of your