Tax conformity is first new law of 2017 session

A new law is expected to provide tax relief to thousands of Minnesota taxpayers.

The law will conform the state to many federal tax code changes made in 2015, including deductions for:

• education classroom expenses up to $250;
• qualified higher education tuition and related expenses;
• mortgage insurance premiums;
• various charitable contributions, including tax-free IRA distribution up to $100,000 to certain public charities for those over age 70 ½; and
• discharges of indebtedness on principal residences.

“This bipartisan bill provides $21 million in tax relief to hardworking Minnesotans across our state, including college students, homeowners, teachers and small-business owners,” Gov. Mark Dayton said during the Jan. 13 signing ceremony.

This law, sponsored by Rep. Greg Davids (R-Preston) and Sen. Roger Chamberlain (R-Lino Lakes), aligns with several tax relief proposals put forward by the governor the first week of session. It mostly takes effect Jan. 14, 2017.

Lt. Gov. Tina Smith praised the Legislature for quick action, especially as the tax filing season begins Jan. 23.“The legislation provides relief to over 200,000 hardworking taxpayers across Minnesota. It also ensures that our tax code matches federal which, this will simplify tax filing for Minnesotans this spring.” 

Revenue Commissioner Cynthia Bauerly said most taxpayers will not have to file amended 2015 returns.

HF2*/SF3/CH1