M1NC: Federal Adjustments (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule M1NC reports adjustments to federal adjusted gross income for federal tax law changes Minnesota has not adopted. It calculates Minnesota adjusted gross income and must be included with Form M1 when used.
Who files this form
Complete 2024 Schedule M1NC if you are affected by any of the federal tax law provisions listed on the schedule. Use it to make the necessary adjustments when you file Minnesota Form M1.
Minnesota has not adopted certain federal law changes enacted after May 1, 2023, that affect federal adjusted gross income for tax year 2024.
What you'll need
Have Form M1 and Schedule M1M available. Depending on your adjustments, you may also need:
- Your federal Form 1040 or 1040-SR and Schedule 1 for the income and deduction worksheets.
- A completed federal Form 8582 for the rental real estate loss worksheet.
- Your Social Security and railroad retirement benefit forms for the Social Security benefits worksheet.
- Worksheets from Appendix B of IRS Publication 590-A if you must use Method 2 for the Social Security benefits adjustment.
- Your traditional IRA contribution amounts and qualified student loan interest paid in 2024 for the applicable worksheets.
Attach statements showing your calculations for amounts reported on lines 3b, 4b, 4c, 5b, 7, 10b, 12a, and 18, as applicable.
How to file
Include Schedule M1NC when you file Form M1.
Add lines 1 through 22 and enter the total on line 23:
- If the total is positive, enter it on line 9 of Schedule M1M.
- If the total is negative, enter it as a positive number on line 34 of Schedule M1M.
Enter the amount from Form M1, line 1, on line 24. Add lines 23 and 24 to calculate your Minnesota adjusted gross income on line 25.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Skipping the instructions. Read them before completing the schedule.
- Using the wrong sign or leaving cents in amounts. Enter amounts as positive or negative as directed, and round schedule amounts to the nearest whole dollar.
- Overlooking related adjustments. If you have an amount on lines 1 through 18 and had rental real estate losses, received Social Security income, contributed to an IRA, or paid student loan interest, review the instructions and worksheets for lines 19 through 22.
- Completing worksheets out of order. Complete any required worksheets for lines 19 through 21 before the line 22 student loan interest worksheet.
- Using the IRA worksheet when it does not apply. Do not use the line 21 worksheet if you used Method 2 for line 20, or if neither you nor your spouse, if filing jointly, was covered by a retirement plan at work or through self-employment.
- Leaving out the schedule. You must include Schedule M1NC when filing Form M1.
Questions people ask
What is Schedule M1NC for?
It makes adjustments needed for your Minnesota return because Minnesota has not adopted certain federal law changes affecting federal adjusted gross income for tax year 2024.
Where do I report an adjustment that has no separate line?
Use line 18 for an adjustment affecting adjusted gross income from federal acts enacted since May 1, 2023, if it is not included on another line of the schedule. Attach a statement showing the calculation.
Do I need to recalculate my student loan interest deduction?
Complete the line 22 worksheet if you deducted student loan interest on your federal return. Complete any required worksheets for lines 19 through 21 first, then enter the student loan interest adjustment on line 22.
Can Schedule M1NC affect other Minnesota credits or deductions?
Yes. The line 23 instructions explain earned income adjustments for certain credit schedules. The line 25 instructions identify forms and worksheets that use your Minnesota adjusted gross income, including those for the education credit, child and working family credits, and renter’s credit.