Fillable Schedule M1nc - Federal Adjustments

Other Adjustments to 1040 Due

Line 8

Itemized deductions on line 40:

Certain Film and Television Production

to Recomputed Amounts

If you itemized deductions when you filed

Minnesota does not allow the modified

If you entered any amount on lines 1

your federal Form 1040, some entries based

treatment of certain qualified film and tele-

through 10, your federal adjusted gross in-

on your adjusted gross income will also

vision production. Any amounts subtracted

come has changed for Minnesota purposes,

change. Complete a separate Schedule A

on federal Form 4562 which reflect this

and therefore, other entries based on your

to recompute the following entries based

treatment must be added back to AGI to

adjusted gross income may change as well.

on your recomputed federal adjusted gross

correctly compute Minnesota tax.

You must recompute any entry on your

income for Minnesota purposes:

Enter the difference between the modified

recomputed 1040 that is based on federal

• medical and dental expenses,

amount and the new amount on Line 9.

adjusted gross income to see if the amount

• charitable contributions,

has changed.

• casualty or theft losses,

Line 10

The following is a list of amounts from your

• job and miscellaneous deductions, and

Shareholders of an S corporation

federal return that must be recomputed for

• total itemized deductions.

For federal purposes, if you are a share-

Minnesota purposes. If different, enter the

holder in an S corporation that donated

Enter the recomputed amount from line 29

recomputed amount on the appropriate line

appreciated property to a charity, you must

of Schedule A on line 40 of your recom-

of your recomputed 1040; if unchanged,

reduce your stock basis using your share of

puted 1040.

enter the original amount.

the adjusted basis of the property, instead of

the property’s fair market value.

Other Federal Forms and

From your federal return:

Schedules You May Need to

Minnesota does not follow this new federal

• Social Security benefits. If you entered

provision. Therefore, if you are a sharehold-

Recompute

an amount on line 20b of Form 1040

er of an S corporation that donated appreci-

or line 14b of Form 1040A, you must

Because some supporting federal forms

ated property to a charity in 2012, and you

recompute your taxable Social Security

and schedules use amounts that may have

either sold the S corporation stock or your

benefits using the worksheet in the 1040

been recomputed, complete a separate

loss was limited or close to being limited by

instructions for lines 20a and 20b. Enter

federal form or schedule if you filed any of

your S corporation stock for lack of basis,

the recomputed amount on line 20b of

the following using the amounts from your

you need to recalculate your basis in stock

your recomputed 1040.

recomputed 1040:

that was generated by the new federal law.

• Child and dependent care expenses, fed-

• IRA and student loan interest. If you

eral Form 2441: complete lines 1–11,

If any of the following situations apply to

claimed any of the following deductions

you, make the necessary adjustments when

on your Form 1040 or 1040A, you must

• Earned income credit worksheet: com-

recomputing your 1040 for Minnesota

recompute the amounts to enter on the

plete line 1 of Worksheet A (1040) or

purposes:

1040 for Minnesota purposes:

lines 1-6 of EIC Worksheet B (1040),

• If you sold the S corporation stock,

• Foreign tax credit, federal Form 1116:

– an IRA deduction on line 32 of Form

increase the basis of the stock reported on

complete lines 1–21,

1040 or line 17 of Form 1040A, or

federal Schedule D (1040) by the amount

– a student loan interest deduction on

• Alternative minimum tax, federal Form

and recalculate your capital gain or loss.

line 33 of Form 1040 or line 18 of Form

6251: complete lines 1–28, and

1040A.

• If you claimed a loss from the S corpo-

• Education Credit, American Opportunity

ration on Schedule E (1040), you must

To recompute these deductions, complete

and Lifetime Learning Credits, federal

use the lower Minnesota stock basis to

the worksheets in the instructions for Form

Form 8863: complete lines 1-8.

calculate whether the federal claimed loss

1040 for lines 32 and 33 using the amounts

reduces the Minnesota basis below zero.

from your recomputed 1040.

• If the federal loss reduces the Minnesota

basis below zero, you must reduce the

S corporation loss on your recomputed

return and on Schedule E (1040) by the

amount below zero.

Schedule M1nc - Federal Adjustments - 2012 Page 4

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