KSNC: Federal Adjustments (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule KSNC is a supplemental schedule an S corporation provides to its shareholders. It reports each shareholder’s share of adjustments to federal taxable income resulting from differences between federal and Minnesota tax law.
Who files this form
Schedule KSNC is a supplemental schedule that an S corporation provides to its shareholders. It reports each shareholder’s share of the corporation’s federal nonconformity adjustments for their Minnesota return.
Shareholders use the information to complete:
- Schedule M1NC for individual shareholders.
- Schedule M2NC for trust or estate shareholders.
- Schedule M2SBNC for electing small business trust shareholders.
Shareholders must include Schedule KSNC when filing their Minnesota return. The form also requires including it when filing Schedule KS.
What you'll need
Use the Schedule KSNC provided by the S corporation and the Minnesota adjustment schedule that applies to you: M1NC, M2NC, or M2SBNC.
Schedule KSNC asks for:
- The shareholder’s name and Social Security number.
- The S corporation’s name, federal ID number, and Minnesota ID number.
- The tax year’s beginning and ending dates.
- Amounts for the applicable federal taxable income adjustments.
How to file
Transfer the amounts from Schedule KSNC to the lines specified for your shareholder type on Schedule M1NC, M2NC, or M2SBNC.
For Schedule KSNC, line 17, total lines 1 through 16:
- If the total is positive, enter it on Schedule KS, line 6.
- If the total is negative, enter it as a positive number on Schedule KS, line 19.
Include Schedule KSNC when filing Schedule KS and when filing your Minnesota return. The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Leaving out Schedule KSNC. The text warns that failing to include it with your Minnesota return will delay processing. It also must be included when filing Schedule KS.
- Using the wrong sign for the total. A negative line 17 total must be entered as a positive number on Schedule KS, line 19. A positive total goes on Schedule KS, line 6.
- Not rounding amounts. Enter amounts as positive or negative and round to the nearest whole dollar.
- Ignoring a changed, amended schedule. If the corporation sends an amended Schedule KSNC and your nonconformity adjustments have changed, you must file an amended Minnesota return.
Questions people ask
Why are these federal adjustments needed?
The form states that Minnesota has not adopted federal law changes enacted after May 1, 2023, that affect federal taxable income for tax year 2024.
Which schedule should I use with Schedule KSNC?
Individuals use Schedule M1NC. Trusts and estates use Schedule M2NC. Electing small business trusts use Schedule M2SBNC.
What if I receive an amended Schedule KSNC?
If your nonconformity adjustments have changed, you must amend your Minnesota return. Individual shareholders use Form M1X, Amended Minnesota Income Tax Return. Trust or estate shareholders use Form M2X, Amended Income Tax Return for Estate and Trust.
Should I fill in lines 12 through 15?
No. The text says these lines are intentionally left blank.