StPaulResident
Returning Member

State tax filing

Incidentally, I think several folks have discussed some aspect of this issue in previous posts (see https://ttlc.intuit.com/community/state-taxes/discussion/minnesota-charitable-contributions-with-sta... and https://ttlc.intuit.com/community/tax-credits-deductions/discussion/unable-to-choose-mn-standard-ded...but I don't believe these explanations show that that the TurboTax software is acting correctly.

 

In my view, the TurboTax software is determining (without directly indicating as such) to the software user that since the MN Standard Deduction is limited (which it is) that it must be better for the MN taxpayer to "Itemize".  However, while that is true on a surface level (Line 4 on Form M1 will be higher with the itemized deductions) itemizing is better, it seems to me that TurboTax is ignoring that by taking the Standard Deduction (even if a bit more limited) the taxpayer can then take additional subtractions on Line 7 of M1 for charitable deductions.

 

I'm tempted to believe that I'm missing something but this is how TurboTax has filed my taxes in the past so it seems odd that this isn't allowed now.