M2SBNC: Federal Adjustments (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
2025 Minnesota Schedule M2SBNC reports adjustments to a trust’s federal taxable income resulting from retroactive Minnesota tax modifications. The total adjustment transfers to Form M2SB, and this schedule must be included when filing that form.
Who files this form
You must complete 2025 Schedule M2SBNC if the retroactive Minnesota modifications enacted in the 2026 Minnesota tax bill affect your return.
Use this schedule to report the resulting income adjustments. Each line must also include any net adjustments from Schedule(s) KSNC for your pro rata share in an S corporation.
What you'll need
Have these available when completing the schedule:
- Your 2025 Minnesota Schedule M2SB.
- Any Schedule(s) KSNC showing adjustments for your pro rata share in an S corporation.
- Worksheets used to determine your adjustments.
- The trust's name, federal ID number, and Minnesota ID number.
Save your entire 2025 Schedule M2SB, Schedule M2SBNC, and all worksheets used to determine the adjustments.
How to file
Include Schedule M2SBNC when you file Form M2SB.
Add lines 1 through 30 and enter the total on line 31:
- If the total is positive, enter it on M2SB, line 18.
- If the total is negative, enter it as a positive number on M2SB, line 31.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Do not skip the instructions. The form says to read them before completing the schedule.
- Use the correct sign: enter a reduction in federal taxable income as a negative number and an increase as a positive number.
- Round amounts to the nearest whole dollar.
- Do not leave out Schedule M2SBNC when filing Form M2SB.
- Keep your entire 2025 Schedule M2SB, Schedule M2SBNC, and adjustment worksheets.
Questions people ask
Why is this schedule 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 goes on line 16?
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 from an S corporation?
Yes. Each line must include the net adjustments received on Schedule(s) KSNC for your pro rata share in an S corporation.
What if the total on line 31 is negative?
Enter it as a positive number on M2SB, line 31. A positive total instead goes on M2SB, line 18.