How do I get rid of the MN Marriage Credit that TurboTax erroneously gives me?

You can delete Schedule M1MA to remove the Marriage Credit.   You can also go back through the state interview.   You may not need to delete it, see below.   I don't see where having non-taxable income would disqualify you.  2024 MN Statute

 

How to delete forms in TurboTax Online

 

How to delete forms in TurboTax Desktop

 

To qualify for this credit, all of these must be true:

 

• You are married and filing a joint return
• You and your spouse have taxable earned income, taxable pensions, or taxable Social Security income
• Your joint taxable income is at least $47,000
• The income of the lesser-earning spouse is at least $30,000

TurboTax Online will not let me remove the MN Marriage Credit. I tried deleting the M1MA form on TurboTax, and it reappears. I downloaded the M1MA form and instructions from the MN Dept. of Revenue, and it explicitly states that Medicaid waiver payments excluded from adjusted gross income should not be included on M1MA. Why is TurboTax forcing me to take this credit? The TurboTax state interview addresses the other income exceptions (military pay, railroad benefits), but skips the non-taxable Medicaid waiver payments, which seems to simply have been overlooked by TurboTax. Can this please be fixed? I'm stuck until this is resolved. Surely there must be other Minnesotans in my situation as well.....

It appears TurboTax is calculating the MN Marriage Credit correctly.  Line 7 on the MN form M1MA is the  "Joint Taxable Income" piece of the calculation.  That number excludes the federal non-taxable Medicaid Waiver Payments since it is derived from federal adjusted gross income (which excluded those payments).  The other piece to the credit calculation is the "Earned" income of the lowest earning spouse on line 6 of the MN form M1MA.  The Medicaid Waiver payment is earned income and would be in that part of the formula.  

I appreciate your response, but I think TurboTax is still incorrectly calculating the MN Marriage Credit.

 

The issue is with Line 6 on the MN Form M1MA. This line is obtained from adding Lines 1-4 on M1MA, and refers to taxable income for each partner. Line 1 explicitly excludes non-taxable Medicaid Waiver Payments (the M1MA instructions clearly state this). Lines 2, 3, 4 involve other taxable income. In our case, my spouse makes less than $30,000 when Medicaid Waiver Payments are not included. Hence we do not qualify.

 

Am I missing anything?

 

 

 

Thank you for bringing this to our attention. We are looking into this issue.

To take a closer look at the situation and report it to the development team, it would be very helpful to have a diagnostic copy of your tax file.  The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  

 

If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using in a follow-up thread.  If you can post a screenshot of the token number then that will prevent it from being redacted.

 

Use these steps if you are using TurboTax Online:

 

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

 

If you are using a CD/downloaded version of TurboTax, use these steps:

 

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

 

@prohmann