KSNC: Federal Adjustments (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota’s 2025 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 needed for a Minnesota return.
Who files this form
Schedule KSNC is a supplemental schedule that an S corporation provides to its shareholders. Shareholders use it to report their share of the corporation’s nonconformity adjustments on their Minnesota return.
Use the information to complete:
- Schedule M1NC if you are an individual shareholder.
- Schedule M2NC if you are a trust or estate shareholder.
- Schedule M2SBNC if you are an electing small business trust shareholder.
You must include Schedule KSNC when you file your Minnesota return. The form also requires it to be included when filing Schedule KS.
What you'll need
Use the Schedule KSNC provided by the S corporation and the applicable Minnesota schedule: M1NC, M2NC, or M2SBNC.
The form 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.
- The federal taxable income adjustment amounts.
How to file
Include Schedule KSNC with your Minnesota return. The form also says to include it when you file Schedule KS.
Transfer the amount on line 16 to the schedule for your shareholder type:
- Individuals: Schedule M1NC, line 23.
- Trusts and estates: Schedule M2NC, line 16.
- Electing small business trusts: Schedule M2SBNC, line 16.
For line 31, total lines 1 through 30. Enter a positive total on Schedule KS, line 6. If the total is negative, enter it as a positive number on Schedule KS, line 19.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out Schedule KSNC. The instructions warn that failing to include it with your Minnesota return will delay processing. The form also requires it with Schedule KS.
- Not amending when required. If you receive an amended Schedule KSNC and your nonconformity adjustments have changed, you must file an amended Minnesota return.
- Using the wrong sign for a negative total. A negative line 31 total must be entered as a positive number on Schedule KS, line 19.
- Not rounding amounts. The form directs you to round amounts to the nearest whole dollar.
Questions people ask
What is Schedule KSNC for?
It gives shareholders information about their share of an S corporation’s nonconformity adjustments so they can report those adjustments on their Minnesota return.
What adjustment is listed on line 16?
Line 16 is for the exclusion of interest on loans secured by rural or agricultural real property under H.R. 1, Section 70435.
Why are most lines blank?
The 2025 schedule labels all adjustment lines other than line 16 as intentionally left blank. Line 31 is the total line.
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. Trust or estate shareholders use Form M2X.