Tax Corner

Minnesota Tax Law Changes

You may have heard that the Minnesota Legislature recently passed tax law changes which come as good news to many Minnesotans. Our fellow advisor, Oliver Kelsey, CPA, CFP® offers the following update. The bill was signed into law on May 24th and includes tax reductions and rebates for eligible taxpayers, including:

1. Beginning for the 2023 tax year, MN will not tax Social Security income for married couples under $100,000 and single filers under $78,000.
2. In the fall MN will send one-time tax rebate checks of $260 per taxpayer and dependent (max of 3) with a max refund of $1,300. To qualify, your 2021 income must be under $150,000 if married, $75,000 single.
3. Eligible property owners will see a one-time, 20% increase in property tax refunds this fall. Renters will benefit from an increased renter’s credit. MN will give a child tax credit of $1,750 per child, but to be eligible, income must be under $35,000 joint, $29,500 single.

More details are available using the links below:

• MN Rebate Checks and Child Tax Credit in 2023
• Tax News Update
• MN Dept of Revenue Direct Tax Rebate Payments

Higher Education Updates

Minnesota Senate recently passed the “Free College” bill, which now awaits the signature of Gov. Tim Walz. The bill would allow students whose families earn less than $80,000 to attend public postsecondary schools for a significantly lower cost. For many, this would mean free tuition at Minnesota public institutions.

Click Here to Read More

Tax Tips for Those in the Military

The Internal Revenue Service has certain special tax breaks and programs for members of the U.S. Armed Forces. Here are a few.

Earned Income Tax Credit

You may include nontaxable combat pay in your taxable income. Including it may boost your earned income tax credit, resulting in you owing less and potentially a larger refund.

Signing Joint Returns

As a rule, both spouses normally must sign a joint income tax return. If your spouse is absent due to military duty, you may be able to sign for your spouse. However, you may need a power of attorney to file a joint return.

Job Search

The Tax Cuts and Jobs Act suspended the deduction for moving and job search expenses for most taxpayers through January 1, 2026. This suspension does not apply to members of the Armed Forces on active duty who move under a military order related to a permanent change of station.

*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov IRS.gov, 2023