M4NC: Federal Adjustments (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule M4NC reports adjustments to 2024 federal taxable income for federal tax law changes Minnesota has not adopted. It calculates the total adjustment to report on Form M4I and must be included when filing Form M4.
Who files this form
Use Schedule M4NC if provisions of the 2025 Federal Tax Budget and Reconciliation Bill (H.R. 1) affect the taxable income reported on your 2024 federal Form 1120. You must make an adjustment to income on your 2024 Minnesota return.
Calculate the adjustment by comparing federal taxable income under the Internal Revenue Code as amended through May 1, 2023, with the amount under current federal law. Include net adjustments from Schedule(s) KPCNC for your pro rata share in a unitary partnership.
What you'll need
Have these forms and details available:
- Your 2024 federal Form 1120 and calculations of the affected income items.
- Your 2024 Minnesota Form M4 and Form M4I.
- Any Schedule(s) KPCNC reporting your share of unitary partnership adjustments.
- Your corporation or designated filer name, federal employer identification number (FEIN), Minnesota tax ID number, and tax year beginning and ending dates.
Attach statements showing depreciation calculations for applicable amounts on lines 1b, 2b, 2c, 3b, 8b, and 10a. Attach a statement showing the calculation of any amount entered on line 16, Other Adjustments to Federal Taxable Income.
Keep your entire 2024 Minnesota Form M4, Schedule M4NC, and all worksheets used to determine the adjustments.
How to file
Include Schedule M4NC when you file Form M4.
On the 2024 schedule, add lines 1 through 16 and enter the total on line 17:
- If the total is positive, enter it on Form M4I, line 2h.
- If the total is negative, enter it as a positive number on Form M4I, line 4n.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Skipping the instructions: The form says to read the instructions before completing the schedule.
- Using the wrong sign: Enter adjustments that reduce federal taxable income as negative numbers and adjustments that increase it as positive numbers.
- Not rounding: Round amounts to the nearest whole dollar.
- Leaving out the schedule: You must include Schedule M4NC with Form M4.
- Not keeping your calculations: Save your entire 2024 Minnesota Form M4, Schedule M4NC, and adjustment worksheets.
Questions people ask
Why are federal adjustments needed?
Minnesota has not adopted federal law changes enacted after May 1, 2023, that affect federal taxable income for tax year 2024. Schedule M4NC calculates adjustments needed to determine Minnesota taxable income.
What does FTI mean?
FTI means federal taxable income.
Do partnership adjustments belong on this schedule?
Yes. Each applicable line includes net adjustments received from Schedule(s) KPCNC for your pro rata share in a unitary partnership.
Do I need to attach calculation statements?
Yes, where required by the line instructions. Statements are required for the listed allowable depreciation calculations and for any amount entered on line 16, Other Adjustments to Federal Taxable Income.