Turbotax is making an error in my state return (MN), adding back fed deduct for IRA. How to elim this addback which appears to have no option for fixing in the software?

[tstuma3]

I am still working on the MN IRA add back.   The federal deduction should not appear on line 2 of the M1NC.  When TT does this, it brings up the need for the worksheet.  Still not sure TT is going to correct this. @BillM223

[DaveF1006]

To clarify, are you over the age of 70 1/2?

@tstuma3

[tstuma3]

Yes, but my spouse is under 70 1/2 and and she is the one with the IRA.

[DaveF1006]

Make sure that when you entered her 1099R, that you entered it's her 1099R and not yours.

• Go to federal>income and expenses>Retirement Plans and Social Security>IRA, 401(k), Pension Plan Withdrawals (1099-R).
• Select edit next to her 1099R. First screen should ask Who does this 1099-R belong to? Be sure her name is checked.

@tstuma3

[tstuma3]

MN DOR has released new instructions to correct this issue on March 7th.  When will TT update their software?

@BillM223 

[tstuma3]

There is a little over a month left for TT to update their MN software with the updated M1NC (as of March 7) before the filing deadline.  Are we to wait for TT to do this?  How can we find out?

[Cynthiad66]

The forms availability list shows the form as being available for TurboTax online.  If you are using another version of TurboTax check forms availability below.

Select your situation to locate your 2021 form.

• TurboTax Online/Mobile (web, iOS or Android)
• TurboTax CD/Download for Windows
• TurboTax CD/Download for Mac

Keep in mind:

• It takes some time to incorporate state forms into TurboTax. While they may be available from your state on a given date, we need a few days to make the forms available for use in TurboTax.
• When you locate your form or schedule, there will be dates for both Print and (depending on the state and the form) E-file availability. If the E-file form is listed as unsupported, the form must be printed and you'll need to mail your return.
• Forms and schedules missing from the table aren't supported in TurboTax.

@tstuma3

[tstuma3]

The TT issue is not that the form is not available, it is that TT is not using the current version.  The current version was published on March 7.  TT is using one published January 28.  The difference results in a significant tax savings for me.

@Cynthiad66 

[tstuma3]

The TT issue is not that the form is not available, it is that TT is not using the current version.  The current version was published on March 7.  TT is using one published January 28.  The difference results in a significant tax savings for me.  @Cynthiad66 

[Cynthiad66]

Understood.  This is being worked on  and I have referred this issue to a Product Support group.  However, there is no mechanism in place to notify you of a fix.  You will have to check back to see if it has been corrected.  

@tstuma3

[tstuma3]

Have all of you given up on the IRA contribution deduction being added  back in to MN taxable income?  I am still trying to get this corrected.

@Cynthiad66 

@DaveF1006

@BillM223 

[BillM223]

The issue has been written up and submitted to the appropriate group. However, the individuals listed above have no control over when or if such issues are addressed.

This late in the tax season, I would not expect this issue to be addressed by the due date. 

Therefore, I suggest that you start planning for the worst case, in which you will e-file your federal return and print, modify, and paperfile your Minnesota return.

As you have no doubt heard, the IRS is millions of paper returns behind, so you want to try hard to e-file your 1040 (federal return). You will want to print extra copies of your federal return (one for you and one to attach to the state return) as well as make copies of any forms like the W-2 or 1099-R that have withholding on them to attach to your state return. In fact, use this time to review what you need to do to file your state's return on paper.

@tstuma3

[tstuma3]

I realize it is getting late in the filing season, however, I started this effort late last January.  Incidently, MN DOR has issued corrected M1NC line 2 instructions to clarify that I no longer need the form or it's line 32 or 33 worksheets.   This makes the MN much simpler and should be much easier for the TT program people.

I also had this issue last year with TT.  It will be difficult to me to use TT next year as a result of these issues.

@BillM223 

[BillM223]

I appreciate your response. The fact that the state has felt the need to issue another update for the instructions is a sign to me that even the DOR realized that its initial instructions were confusing. In fact, based on the initial instructions, the literal meaning was that if either taxpayer was over 70 1/2, then the IRA deduction had to get added back to MN state income, as I pointed out to them in my email a month or two again. I don't know if it was my email or your persistent queries or maybe the phase of the moon that finally got the state to realize that they could have made it less confusing - and "Do not enter an amount for any deduction claimed by an individual under 70 1/2." is certainly much clearer than the original instructions.

I will pass these updated instructions on to the team that works on such things. Thanks again!

@tstuma3

[tstuma3]

Following is a response received from MN DOR yesterday:

Hi Ted, we notified software vendors last Wednesday of the updates to Schedule M1NC and the worksheet for Line 2. Hopefully TurboTax will push this update out soon if they have not done so already.

Minnesota Department of Revenue

@BillM223