Over the last five years, we’ve seen a dramatic shift in federal income tax laws following the Tax Cuts and Jobs Act of 2017. The State of Minnesota, however, has been slow to adopt these changes—until recently.
In January 2023, Governor Walz signed a bill into law to match Minnesota’s income tax law retroactively to the Internal Revenue Code as amended through December 15, 2022. Here’s how this tax law change could impact you.
What this means for Minnesota taxpayers
If you filed a nonconformity schedule with your Minnesota income tax return during tax years 2017 through 2021, you may need to file an amended return, as many federal income nonconformity modifications are no longer required. Depending on your tax situation, this could be favorable or unfavorable, meaning you could see a refund or be required to pay additional tax.
What this means for our clients
If you’re a Froehling Anderson client, you don’t need to do anything! We’ll look at your previous tax returns to determine if you’re affected by the new law when we prepare your 2022 return. If so, we’ll let you know which years are affected and if it would be tax advantageous to file any amended returns.
Of course, if you have questions about these conformity changes or how you could be impacted, don't hesitate to contact us.
