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Returning Member
posted Apr 11, 2022 12:36:57 PM

Minnesota Student Loan Credit (M1SLC) blocked from e-file

Yesterday I successfully got my Federal Return e-filed and accepted, but for some reason it won't let me e-file my Minnesota State taxes as it continuously tells me I need to fix my M1SLC.

I enter my "TP qualified Student Loans" which I'm pretty positive means you enter exactly how much you've paid in principle and interest in Student loans. I enter 676 there and then I enter 5,000 dollars in line 7 for total amount of loans out that paid for post secondary education (lesser than 5000). I put those two numbers in, press continue and it just constantly sends me in a loop of pressing e-file and then making me "fix one last thing" (which is again the M1SLC) and so I can't e-file.

What is going on? Is this an error woth turbo tax or is something actually wrong with my M1SLC? The descriptions as to what to do with the M1SLC are non existent or don't help at all. I don't know what I'm doing wrong.

4 29 7717
24 Replies
Expert Alumni
Apr 11, 2022 1:53:21 PM

I have not seen any other questions on this subject.

 

Which program are you using, Desktop or Online

 

Does the program only ask you for 

Interest paid

Amount of loan (up to 5,000)

 

It seems like it would also be asking for the total payments made (principal and interest) 

 

Ae you making three entries for that form or does it only ask for two?

 

Here is a link to the form and instructions

https://www.revenue.state.mn.us/sites/default/files/2021-12/m1slc_21.pdf

Returning Member
Apr 11, 2022 2:32:17 PM

I saw one guy below me having the same issue. His question refers to the "TP qualified student loans" which is the same issue I see. It is happening on both mobile and desktop.

It is only asking me to input "TP qualified Student loans" on the top which is confusing in itself (no other description) and also allows me to enter into line 7 which is total outstanding loans used to pay for secondary education (up to 5000 dollars). It does not seem to ask for interest paid, although I already entered that on my Federal forms and it should carry over. MN is unique in that it wants to know how much principal and interest you pay.

 

I have tried inputting total interest and principle and 5000 dollars, I have tried total I + P and nothing in line 7. I've tried just putting in total interest (with and without 5000 in line 7). It will not accept it either way. It just brings me back to "fix the problem or send by mail" everytime while trying to e-file.

Returning Member
Apr 11, 2022 4:01:53 PM

So I've looked at it again. Confirmed I can only enter in the "TP qualified loan amount" and line 7.

I am seeing that this year (unlike other years due to covid student loan relief) my line 5 is negative which means I stop there, but it still insists I fill in line 7. It doesn't appear I'm doing anything wrong by the prompts.

 

Above is what I see and it just brings me through a loop of "fix Minnesota return" and brings me to the same M1SLC form over and over asking me to reinstall data.

 

@KrisD15 

Expert Alumni
Apr 11, 2022 4:16:04 PM

Once your income is too high for the credit, the program fails during the review without letting you know the reason. Delete the M1SLC in order to file your return.

 

Here is the form.

 

Choose your method of deletion:

  • Online: A simple way to delete forms in TurboTax online is to use the Tax Tools menu option, which is on your left menu bar when you are working in your program. Then, choose Tools and then Delete a form.
  •  Desktop: If you are working in the download TurboTax program, use the Forms Mode on your menu bar to bring up the form you want to delete, then choose the Delete Form option at the bottom of the form.

Expert Alumni
Apr 11, 2022 5:33:04 PM

Once your income is too high for the credit, the program fails during the review without letting you know the reason. Delete the M1SLC in order to file your return.

 

Here is the form.

 

Choose your method of deletion:

  • Online: A simple way to delete forms in TurboTax online is to use the Tax Tools menu option, which is on your left menu bar when you are working in your program. Then, choose Tools and then Delete a form.
  •  Desktop: If you are working in the download TurboTax program, use the Forms Mode on your menu bar to bring up the form you want to delete, then choose the Delete Form option at the bottom of the form.

New Member
Apr 12, 2022 6:26:56 PM

Thank you this helped me so much!

New Member
Apr 12, 2022 8:55:02 PM

I am having the exact same problem on my MN taxes

Expert Alumni
Apr 13, 2022 12:46:52 PM

Once your income is too high for the credit, the program fails during the review without letting you know the reason. Delete the M1SLC in order to file your return.

 

Here is the form.

 

Choose your method of deletion:

  • Online: A simple way to delete forms in TurboTax online is to use the Tax Tools menu option, which is on your left menu bar when you are working in your program. Then, choose Tools and then Delete a form.
  •  Desktop: If you are working in the download TurboTax program, use the Forms Mode on your menu bar to bring up the form you want to delete, then choose the Delete Form option at the bottom of the form.

@houg0096

Returning Member
Apr 13, 2022 5:18:12 PM

THANK YOU AMYC

New Member
Apr 13, 2022 8:01:36 PM

I was so stressed and frustrated about this. I'm so grateful for your post. Thank you!

New Member
Apr 13, 2022 8:23:20 PM

I created my account just to say Thank you for this! I was stuck trying to file and not sure what was going on.

New Member
Apr 14, 2022 12:54:52 PM

I am having the exact same issue. Same loop and unable to even submit my Federal return due to this.

New Member
Apr 14, 2022 1:32:33 PM

Thanks for this Amy. You saved the day for me here as well. I was having the same issue as the rest. I just deleted the form and on I went. Cheers!

New Member
Apr 14, 2022 6:25:18 PM

Amy, you are my hero.

New Member
Apr 14, 2022 7:38:51 PM

I also got stuck here. I could not over ride this. Your post and how to delete the page was very helpful. I did not see the value in submitting tax return via certified mail which is what it was requesting I do. Thank you so much! 

New Member
Apr 15, 2022 3:58:13 PM

What is the max income to be able to fill out this form?

New Member
Apr 15, 2022 9:47:33 PM

I’m getting the same thing!!! It’s so frustrating!! I’ve been working on it for the last 4 hours that’s the only Hangup. Fed return has been filed and accepted. 

New Member
Apr 16, 2022 7:09:45 AM

this is also happening to me. are there any answers to this?

Level 1
Apr 16, 2022 8:21:48 AM

I am having the exact same issue today.  Turbo tax will not allow me to file as it keeps checking the Minnesota return and bringing me back to hte M1SLC, stating that it needs to be updated.  I do the same, enter $5000, but it still will not allow me to file.  It is a continuous loop of running the check and bringing me back to the same item to update.  Any solutions!!??

New Member
Apr 16, 2022 4:13:15 PM

Amy,

 

Can you let us know the amount of income needed to be made in 2021, before becoming disqualified for the  M1SLC? I cannot find any information that confirms your solution here. 

Thank you,

New Member
Apr 16, 2022 8:03:17 PM

I am more confused by the wording of this line...'Enter the lesser of $5,000 or the amount of qualified education loan used to pay for your postsecondary education'

 

Does this mean the amount of students loans I took out specifically in 2021? Or the total amount of loans taken out in my lifetime?

 

It makes a huge difference on the amount of my return so I want to make sure I get it correct.

New Member
Apr 17, 2022 9:22:23 AM

THANK YOU!! It is definitely a glitch in the program. I did the form by hand to be sure. It is supposed to be BLANK if your payments are essentially less than 10% of your individual income, yet the program insists on entering a number, then won't accept the number. UGH!!

Your advice saved me a trip to the post office. Deleting the form let me e-file.

There are a lot of complaints about this dating back a while. Come on TurboTax, FIX IT. I spent far too much time on this matter. I paid the extra $49 for convenience which I DID NOT GET. (I used to only e-file federal and always paper file state to save this money. SO MUCH FOR THAT IDEA!!!)

Thank you again,

Anniebuddy

Returning Member
Apr 17, 2022 8:48:07 PM

The max income, according to the form on MN's site, would be an AGI of $60,000.  At that income, box 3 = $50,000, box 4 = $5,000, and box 5 = $0.  I had the same issue with TurboTax not catching that I didn't qualify.  Used Amy's method to delete the form and submit.

https://www.revenue.state.mn.us/sites/default/files/2021-12/m1slc_21.pdf

 

Correction, that response is only true for me, because I paid $5,000.  The max income is 10x what you paid, plus $10,000.  So if you paid $10,000 in student loan payments, the max income should be $110,000 (F-AGI).  If you only paid $2,000 (maybe because payments have been suspended), then you won't earn the credit if you made over $30,000 (F-AGI).

 

For future reference, if you're scheduled to pay $500 per month and there are no weird COVID exceptions, then you'd end up paying $6,000 a year.  That means as long as your AGI is $70,000 or less, you'd earn some sort of credit.  The best way to make sure you get the max credit is to pay up.  My F-AGI was $72k, so in order for me to have earned the $500 credit, I needed to pay $6,700 in 2021.  In order to earn ANY credit, I needed to pay at least $6,201 (for a $1 credit).  I paid $5,000, so I didn't qualify.  Bummer!

Line 1: $6,700

Line 2: $72k

Line 3: $62k (Line 2 - $10,000)

Line 4: $6,200 (Line 3 * 0.1)

Line 5: $500 (Line 1 - Line 4)

Line 6: $72k (estimated)

Line 7: $5,000

Line 8: $500 (Line 7 * 0.1)

Line 9: $15

Line 10: $515 (Line 8 + Line 9)

Line 11: $500 (Lesser of 5, 6, 10)

Line 12: $500

Line 13: $500 (Lesser of 11, 12)

Line 14: $500 

Line 15: $500 (credit earned)

Returning Member
Apr 17, 2022 9:00:57 PM

https://www.revenue.state.mn.us/sites/default/files/2021-12/m1slc_21.pdf

 

In the instructions, it says this is the original amount of your loans.  So if you took out $2,000 in 2010, $2,500 in 2011, and $3,000 in 2012, you'd enter $5000.  But if you only ever took out a $2,000 student loan and somehow, magically, paid for college with other means, you'd enter $2,000.