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

[Akmeegs]

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! 

[lmeyer86]

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

[Cassiemartin1]

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. 

[ggrymes]

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

[BCappy]

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!!??

[User1987]

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,

[jungels05]

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.

[anniebuddy]

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

[vikfan79]

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)

[vikfan79]

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.

[lab713]

My spouse and I do not exceed the credit, but the program is not allowing us to enter the $5000 for my spouse. We type it in, and it literally does not enter. His line 5 is negative, but when we delete his loan information, we lose around $500.

[oxart]

THANK YOU AMY!

[rwerdon]

You saved me!   This caused me so much frustration.  Thank you!

[hw14]

@AmyC 

The real answer is still a mystery to me, but it’s not because someone’s income is too high.

[AmyC]

@hw14 You are posting on an old thread but the information is appreciated. You caused me to go to Student Loan Credit | Minnesota Department of Revenue  to read the changes for this year. I also looked at the actual form, Schedule M1SLC, Student Loan Credit, for 2022. The form is still asking for federal AGI on line 2 and has calculations regarding it.  This form shows the requirement to have income is in place but no limit on how high the income is. This is a nice change and important to note. 

I am assuming that you are not able to e-file your return with the credit. With the rules for this year, you would need a positive income to qualify. If you qualify and are unable to efile, would you please reply with more information for us to help you? Are you receiving a review error or a rejection? What is the message?