Instructions For Schedule M-1mtc Minnesota Alternative Minimum Tax Credit 1998

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Schedule M-1MTC Instructions for 1998
Purpose of Schedule M-1MTC
Line instructions
Part 2
Schedule M-1MTC allows persons who
Lines 26–29
Part 1
have paid the Minnesota alternative
If you are not subject to the alternative
minimum tax in prior years and are not
Lines 1–25
minimum tax for 1998, you are eligible for
required to pay it in 1998 to determine if
Part 1 will determine the minimum tax
the credit in 1998. However, you must fill
they may take a credit against their tax for
credit, if any, generated by paying the
out and file the 1998 Schedule M-1MT to
1998, or later years. The schedule should
alternative minimum tax in 1997. All line
determine the credit for which you are
be filed with your 1998 Minnesota Form
references for Part 1 are to your 1997
eligible.
M-1.
Minnesota and federal tax forms.
If you are subject to the alternative
Part 1 is used to determine the minimum
Line 2
minimum tax for 1998, skip Part 2. You
tax credit for alternative minimum tax
may not take the credit on your 1998
Fill in the amount of:
paid for 1997. Part 2 is used to calculate
return.
how much, if any, of that credit can be
• federally exempt interest and dividends
used in 1998. Part 3 is used to determine
from obligations of other states included
Line 26
any minimum tax credit that you can carry
on line 3 of your 1997 Form M-1 (or from
Full-year residents: Fill in the amount
forward.
lines 1 and 2 of your 1997 Schedule
from line 19 of your 1998 Schedule M-1MT.
M-1M), and
You will not be able to fill out Parts 2 and 3
Part-year residents and nonresi-
until you determine your 1998 tax liability.
• tax-exempt interest from Minnesota
dents: Multiply line 19 of your 1998
private activity bonds issued after
New: A recent law change, retroactive to
Schedule M-1MT by the percentage on line
August 7, 1986, included in line 13 of
tax year 1997, may affect any 1997 alterna-
22 of your 1998 Schedule M-1NR.
your 1997 federal Form 6251.
tive minimum tax (AMT) you may have
Line 27
paid.
Line 6
Full-year residents: Fill in the amount
If you received interest or mutual fund
If you paid Minnesota AMT in 1997 and
from line 18 of your 1998 Schedule M-1MT.
dividends from U.S. bonds, fill in the
had a deduction for casualty loss or were a
amount you included on line 5b of your
Part-year residents and nonresi-
shareholder of a financial institution
1997 Form M-1 (or from line 7 of your 1997
dents: Multiply line 18 of your 1998
electing to be taxed as an S corporation for
Schedule M-1M).
Schedule M-1MT by the percentage on line
federal tax purposes, you must file an
22 of your 1998 Schedule M-1NR.
amended return for 1997. Be sure to use
Line 7
Form M-1X and attach a corrected 1997
The amount on this line cannot be less
If you received any pension or annuity
Schedule M-1MT. If your 1997 AMT is
than zero.
paid by the Railroad Retirement Board, fill
reduced or eliminated due to the law
in the amount you included on line 5b of
Part 3
change, you may not qualify for the 1998
your 1997 Form M-1 (or from line 9 of your
alternative minimum tax credit.
Line 30
1997 Schedule M-1M).
Who should file
If you were subject to the alternative
Also, if you are an American Indian who
minimum tax for 1998 and did not have to
If, on your 1997 Schedule M-1MT, the
lived and worked on a reservation during
complete Part 2, fill in the amount from
amount on line 18 is more than line 19, you
1997, include the reservation income you
line 25.
should fill out Schedule M-1MTC to
included on line 5b of your 1997 Form M-1
determine if you are eligible for the credit
(or from line 10 of your 1997 Schedule
You may carry forward any unused
for 1998.
M-1M).
portion of your minimum tax credit.
If you have a carryforward, attach Sched-
You should also file Schedule M-1MTC if
Fill in the total on line 7 of your Schedule
ule M-1MTC to your 1998 Form M-1, even
you had any carryover from your 1997
M-1MTC.
if you could not use any of the credit for
Schedule M-1MTC.
1998.
Line 15
If you paid alternative minimum tax for a
Fill in the amount from line 16 of your
Save copies of the schedule for filing in
year after 1988 but did not complete a
1997 Schedule M-1MT.
later years. The 1999 Schedule M-1MTC
Schedule M-1MTC, you should obtain and
will have a line for this amount.
complete the form to determine any
If in 1997 you had a deduction for casualty
carryover.
loss or were a shareholder of an electing
financial institution, be sure to use the
When to file
amount from line 16 of your amended 1997
File the 1998 Schedule M-1MTC with your
Schedule M-1MT.
1998 Minnesota Form M-1. The credit is
not refundable. However, you may carry
Line 19
forward to later years any part of the
Fill in the amount from line 18 of your
credit that you cannot use in 1998.
1997 Schedule M-1MT.
If in 1997 you had a deduction for casualty
loss or were a shareholder of an electing
financial institution, be sure to use the
amount from line 18 of your amended 1997
Schedule M-1MT.

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