I am a resident of Minnesota, so I will be taking the standard deduction for Federal, but itemizing for my State return. Can Turbo Tax process that?

 
JulieCo
New Member

Deductions & credits

Yes, TurboTax will allow you to use the standard deduction on the federal return and itemize on the Minnesota return, since this is allowed by the state of MN.  Note, that since you want to itemize for the Minnesota return, be sure to enter your itemized expenses in that section of TurboTax when working on your federal form.  This information can then be pulled to your form for Minnesota to create Schedule M1SA to itemize your deductions on the state return. 


Note, that if your itemized deductions allowed for Minnesota are under the standard deduction amount, TurboTax will use the standard deduction for Minnesota as well. 

The standard deduction amounts available to taxpayers on their Minnesota 2018 return are:
• Married filing jointly or surviving spouse: $13,000
• Head of household filing: $9,550
• Single or married filing separately: $6,500
The standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed
the greater of:
•$1,050 or
• The sum of $350 and the individual’s earned income.
The additional amounts added to the above listed standard deductions for taxpayers that are elderly or blind are:
• Single: $1,600
• Married: $1,300
This revenue notice only applies to the election to claim either the standard deduction or to itemize deductions on the
2018 Minnesota individual income tax return. It does not apply to any other election that a taxpayer makes on their federal individual income tax return. All other elections must be consistent on the taxpayer’s 2018 federal income tax return and their 2018 Minnesota income tax return. Any difference between federal and Minnesota law must be addressed through modifications, including additions and subtractions.  See page 13 of the MN 2018 Forms and Instructions PDF file here: 

Minnesota 2018 Forms and Instructions PDF


[Edited 1-17-18|12:08pm]



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JulieCo
New Member

Deductions & credits

FYI:  I added the MN standard deduction amounts to my answer so you are aware that if your itemized deductions allowed for MN are not greater than the MN standard amount, TurboTax will use the MN standard amount on your MN tax return as well.
maripuri
New Member

Deductions & credits

Wonderful, but unfortunately there is NO option to use M1SA yet. Fix the software please. Turbotax is forcing me to take the standard deduction when I want to itemize on state.

Deductions & credits

I have similar problem with even new release M1SA form on 1/24/2018.  Mortgage interest from 1040 -1098 form shows correctly but leaves Red Flag on M1SA form even though the numbers are correct and when analyzed asks to correct before filing. It appears there is software problem needs attention and correction. I use Turbo Tax Deluxe CD.
maripuri
New Member

Deductions & credits

I don’t even have the option for M1SA online yet. Why they would allow you to start a MN return with even the most basic forms not available is beyond me.
maripuri
New Member

Deductions & credits

I wish TurboTax would make this issue more obvious from the start of the return. I only caught it because my MN taxable income seemed way too high!

Deductions & credits

I’m on the online version and it keeps forcing the MN standard deduction. It does not seem to be working with the M1SA form yet as our Federal Itemized amount is higher than the 2018 standard deduction.
maripuri
New Member

Deductions & credits

Try editing one of your federal deductions or adding a deduction (and then deleting it). It will force TT to recalculate. It worked for me.

Deductions & credits

Do I need to delete my State return before editing a federal deduction? It doesn’t appear to be taking as my state form currently exists.

Deductions & credits

Got it working! I had to temporarily change my Federal to take the itimezed deduction even though the standard one is larger. Doing that forced MN to take the itemized deduction. I switched the federal return back to the standard deduction and the new MN data kept.
mingles75
New Member

Deductions & credits

I was already doing itemized for federal, and was still getting the M1SA requirement.  I've changed it back and forth and started MN over and it still hasn't fixed the problem.

Deductions & credits

I was going to claim standard deduction for both Federal as well as MN state. So I removed 1098 entry Mortgage Payment on Federal Tax Return form. The red Flag cleared and Return is clean for filing.
mingles75
New Member

Deductions & credits

I've read elsewhere that this was supposed to be available on the 24th of Jan.  I want to itemized both, but I am stuck.

Deductions & credits

Jan 24 patch did not correct the problem. I am not sure when they are going to correct and respond.