Governor Mark Dayton signed the omnibus tax bill on May 30, 2017. There were many additions and changes that will affect taxpayers for 2017 and beyond. Below is a brief summary of some of the major changes that could impact your 2017 tax filing.

2017 Individual Tax Subtraction and Credits

  • Refundable credit for tax paid for personal and professional services performed in Wisconsin at a higher rate than if their earnings were all in Minnesota.
  • First Time Homebuyer Savings Account subtraction.
  • Credit or subtraction for contribution to a Section 529 College Savings Plan. The credit has a phase-out limit. The subtraction does not have a phase-out limit. Contributions to any state Section 529 College Savings Plan qualifies for the credit or subtraction.
  • Social Security Benefit Subtraction that will be phased-out based on your income level.
  • Student loan credit for postsecondary education loans may qualify for a nonrefundable credit up to $500.

2018 Tax Credit

  • Beginning Farmer Incentive credit may be available to owners of agricultural assets who sell or rent to beginning Minnesota farmers. Unused credit may be carried over for 15 years.
  • Beginning farmers may qualify for a credit by participating in a financial management program approved by the Rural Finance Authority. Unused credit may be carried over for 3 years.

Estate Tax

  • The estate tax exemption has been increased from $1.8 million to $2.1 million for 2017.
    Increases for future years are:

    • 2018 – $2.4 million
    • 2019 – $2.7 million
    • 2020 and thereafter – $3.0 million
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Lance Campbell
I am the partner-in-charge of the Rochester, MN office. I provide tax services to individuals, businesses and agricultural clients. I also provide compilation services and am QuickBooks Certified ProAdvisor.

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