M4NC: Federal Adjustments (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota's 2025 Schedule M4NC reports adjustments to federal taxable income for retroactive Minnesota tax modifications. It includes adjustments for interest on loans secured by rural or agricultural real property and domestic research and experimental expenditures, and is filed
Who files this form
Use 2025 Schedule M4NC if the retroactive Minnesota modifications enacted in the 2026 Minnesota tax bill affect your return. You must report the resulting income adjustments on this schedule.
Each applicable line must also include net adjustments from Schedule(s) KPCNC for your pro rata share in a unitary partnership.
What you'll need
Have the following information and records available:
- Your corporation or designated filer name, federal employer identification number (FEIN), Minnesota tax ID number, and tax-year beginning and ending dates.
- Your 2025 Minnesota Form M4 and Form M4I, where the total adjustment is reported.
- Any Schedule(s) KPCNC showing adjustments for your share in a unitary partnership.
- Worksheets used to calculate your adjustments.
- If claiming the line 23 subtraction, the addition amounts reported on your 2022, 2023, or 2024 returns.
Save your entire 2025 Minnesota Form M4, Schedule M4NC, and all worksheets used to determine the adjustments.
How to file
Include Schedule M4NC when you file Form M4.
Add lines 1 through 30 and enter the total on line 31:
- 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 4o.
Common mistakes
- Read the instructions before completing the schedule.
- Use the correct sign: enter reductions to federal taxable income as negative numbers and increases as positive numbers.
- Round amounts to the nearest whole dollar.
- Do not omit Schedule M4NC when filing Form M4.
- Keep your entire 2025 Minnesota Form M4, Schedule M4NC, and adjustment worksheets.
Questions people ask
Why are adjustments still needed if Minnesota adopted the federal tax code?
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 tax bill.
What interest income 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 income as a positive number on line 16.
How much of my immediate domestic research deduction goes on line 21?
Enter 80% of the immediate deduction you claimed for domestic research or experimental expenditures under IRC section 174A(a) as a positive number.
Can I subtract research expenditure additions reported in earlier years?
If you reported an addition for domestic research and experimental expenditures on your 2022, 2023, or 2024 returns, enter one-fourth of those addition amounts as a negative number on line 23.