Teresa Radermacher, CPA
Bookkeeping Red Flags and What To Do About Them
Bookkeeping is strategically important for every business because financials form the foundation for daily operations and future planning....
May 12, 2022 - UPDATE: The Minnesota Department of Revenue has recently gone back to adjusting 2019 and 2020 tax returns after halting the process due to the 2021 filing season and an overwhelming backlog of PPP loan and unemployment compensation adjustments. As they are getting back to making the tax return adjustments, certain taxpayers who took the standard deduction in those tax years are beginning to receive notices.
November 4, 2021 - The Minnesota Department of Revenue recently updated the worksheet that is included in the 2019 and 2020 Minnesota Individual Income tax instructions for use in calculating the standard deduction limitation.
The worksheet for calculating this limitation was incorrect, reducing the standard deduction by 20% when it should have reduced it by 80%.
The Department of Revenue has begun sending out letters to all affected taxpayers who have filed their 2019 and 2020 income tax returns. We anticipate several of our clients will be receiving these letters notifying them of the incorrect calculation and the adjustments made to their 2019 and 2020 income tax returns.
Does this affect my 2019 or 2020 Minnesota tax return?
If federal adjusted gross income exceeds the following thresholds, the update may impact your return.
|
Filing Status |
Tax Year 2019 |
Tax Year 2020 |
|
Single |
$276,000 |
$280,534 |
|
Married Filing Jointly |
$357,334 |
$363,200 |
|
Qualifying Widow(er) |
||
|
Married Filing Separately |
$178,675 |
$181,609 |
|
Head of Household |
$317,000 |
$322,200 |
As with all notices from tax authorities, if you receive a letter from the Minnesota Department of Revenue, please forward to your tax preparer for review. Any additional tax assessed due to this issue will not be assessed penalty or interest if paid within 60 days.
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Melissa Doumbia, CPP: March 13, 2024
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Redpath and Company: March 5, 2024
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