Minnesota IRA deduction for people 70 1/2

[jdnaylor]

Minnesota disallows an IRA deduction for 2021 if the taxpayer was over 70-1/2 on 1/1/2021.  We both contributed $7000 to our IRAs.  My wife was 70-1/2 on Jan 1, but I was not (would not get there until 2/26/2022.  Therefore Turbotax should have only added back $7000 to our MN return, but it adds the whole $14000, and I cannot edit the form to change it.  Please fix this bug.

[jdnaylor]

Whoops, I meant 2/26/2021 not 2022

[ErnieS0]

TurboTax does the correct math and only adds back the IRA deduction for the spouse over 70 1/2. I confirmed this on both the Online and CD/Download versions. If you are using CD/Download, make sure your program is up to date.

[tstuma3]

TT is adding back the IRA for the spouse under 70 1/2 in the online version.  Called TT multiple times.  Still waiting for the correction.

[DanaB27]

It would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

Here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

@tstuma3

[tstuma3]

For the third time, the new token number is 946831.

[tstuma3]

TT puts the IRA deduction on line 2 of the M1NC which transfers to the M1M and then to the M1.  The line 33 worksheet TT has confusion with is only for those who have a retirement plan at work and then to see if the high-income phase outs apply.

Incidentally, line 2 of the M1NC specifically states to enter the IRA deduction for those over 70 1/2.  My spouse is under 70 1/2.

Not sure how much clearer I can state this.

[jdnaylor]

Already handled no further assistance required

[jdnaylor]

Problem already solved no assistance needed

[tstuma3]

It is not fixed on my MN return.  Can you explain what you mean when you say it is fixed as far as how in appears in the MN tax return?

[tstuma3]

It is not fixed on my MN return.  Can you explain what you mean when you say it is fixed as far as how in appears in your MN tax return?

[tstuma3]

For the third time, the new token number is 946831

[jdnaylor]

By solved, I meant I gave up on Turbotax, had my accountant file my taxes

[DanaB27]

I reviewed your file and the instructions of M1NC.They state for line 2: "If your filing status is married filing jointly and you or your spouse are over age 70 1/2 at the beginning of 2021, enter the full amount of the deduction claimed on line 20 of Schedule 1 on line 2 of Schedule M1NC." Therefore, TurboTax is handling it correctly.

@tstuma3

[tstuma3]

You are misreading the line 2 instructions.  MN DOR's intent is that a spouse over 70 1/2 should enter the IRA deduction taken on the Federal return.  A spouse under 70 1/2 would not enter the number.

@DanaB27