M1NC: Federal Adjustments (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
The 2025 Minnesota Schedule M1NC reports adjustments to federal adjusted gross income for your state tax return. It totals these adjustments for Schedule M1M and must be included when you file Form M1.
Who files this form
Complete 2025 Schedule M1NC if you are affected by either provision listed on the schedule:
- Distributions from a 529 higher education savings account used for postsecondary credentialing expenses. Line 1 covers the earnings portion of distributions made after July 4 that were not included in your federal adjusted gross income.
- Interest income excluded under IRC section 139L for loans secured by rural or agricultural real property, for taxable years ending after July 4, 2025.
Use the schedule to make the necessary adjustments when you file Form M1.
What you'll need
The schedule identifies these related forms:
- Form M1: Include Schedule M1NC when you file it.
- Schedule M1M: Report the total adjustment from Schedule M1NC on the applicable line.
- Schedule M1529, if applicable: If you filed this schedule for a prior tax year, you may need to complete lines 7 through 15 with your 2025 return.
How to file
Include Schedule M1NC when you file Form M1. The supplied text does not specify a mailing address or e-filing method.
Common mistakes
- Read the instructions before completing the schedule.
- Enter amounts as positive or negative, as directed, and round to the nearest whole dollar.
- Do not forget to include Schedule M1NC when filing Form M1.
- If you previously filed Schedule M1529, check whether you need to complete lines 7 through 15 with your 2025 return.
Questions people ask
What is Schedule M1NC for?
It makes adjustments to your Minnesota return based on changes enacted during the 2026 Minnesota Legislative Session. This version is for tax year 2025.
What amount goes on line 1?
If you used a 529 higher education savings account distribution for postsecondary credentialing expenses, include the earnings portion of distributions made after July 4 that were not included in your federal adjusted gross income.
What amount goes on line 23?
Enter as a positive number the interest income you excluded under IRC section 139L for loans secured by rural or agricultural real property, for taxable years ending after July 4, 2025.
Where does the total adjustment go?
Add lines 1 through 40 and enter the result on line 41. If the result is positive, enter it on Schedule M1M, line 9. If it is negative, enter it as a positive number on Schedule M1M, line 39.