M2NC: Federal Adjustments (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule M2NC reports adjustments to federal taxable income for your 2025 Form M2 resulting from retroactive Minnesota tax law modifications. It includes applicable net adjustments received from Schedules KFNC, KPINC, and KSNC and must be included when you file Form M2.
Who files this form
Use 2025 Schedule M2NC if retroactive Minnesota modifications enacted in the 2026 Minnesota tax bill affect your return. You must report the required income adjustments on this schedule.
Include any net adjustments from Schedules KFNC, KPINC, and KSNC for your proportional share in another business, estate, or trust.
What you'll need
Have these available when completing the schedule:
- Your 2025 Minnesota Form M2.
- Any Schedules KFNC, KPINC, and KSNC showing net adjustments for your share in another business, estate, or trust.
- Worksheets used to determine your adjustments.
- The estate or fiduciary name, federal ID number, and Minnesota ID number requested on the form.
Save your entire 2025 Minnesota Form M2, Schedule M2NC, and all worksheets used to determine the adjustments.
How to file
Include Schedule M2NC when you file Form M2.
Total lines 1 through 30 and enter the result on line 31:
- If the total is positive, enter it on Form M2, line 50.
- If the total is negative, enter it as a positive number on Form M2, line 62.
The provided text does not give a mailing address or e-filing directions.
Common mistakes
- Do not skip the instructions. The form says to read them before completing the schedule.
- Use the correct sign: a reduction in federal taxable income is negative, and an increase is positive.
- Round amounts to the nearest whole dollar.
- Do not leave Schedule M2NC out when filing Form M2.
- Keep your entire 2025 Form M2, Schedule M2NC, and adjustment worksheets.
Questions people ask
Why are federal adjustments still needed?
Minnesota generally adopted the Internal Revenue Code as amended through May 1, 2026. Some adjustments still apply because of retroactive Minnesota modifications enacted in the 2026 tax bill.
What belongs on line 16 of the 2025 schedule?
If you excluded interest income under IRC section 139L from loans secured by rural or agricultural real property for taxable years ending after July 4, 2025, enter that excluded interest income as a positive number on line 16.
Do I include adjustments received from another business, estate, or trust?
Yes. Each applicable line must include the net adjustments received on Schedules KFNC, KPINC, and KSNC for your proportional share in another business, estate, or trust.
Where does the total adjustment go on Form M2?
Add lines 1 through 30. A positive total goes on Form M2, line 50. A negative total goes on Form M2, line 62, entered as a positive number.