Bigger Returns Expected This Tax Season
MANKATO -- Unfinished legislation is the reason Minnesota tax returns will require a few extra steps this year.
State lawmakers did not complete the tax conformity bill, which would have synced Minnesota's income tax rules with the 2017 federal tax overhaul. However, due to new federal tax laws, the majority of Minnesotans will pay less income tax this year.
Tax rates in five of the seven brackets have decreased, now ranging from 10 to 37 percent. Sandy Buckley, CPA at Kitchenmaster, Klooster & Begalka in North Mankato, said the difference will be noticeable for most taxpayers.
"The vast majority of people will pay income tax at about three to four percent less than they did last year," Buckley said.
In addition, an increased standard deduction on state taxes is one of the biggest changes Minnesotans can expect.
"In the past, many more people were able to take itemized deductions," Buckley said. "But this year the new tax law increased the standard deduction for individuals to $12,000, for head of household to $18,000 and to married filing joint to $24,000."
2019 could bring much simpler a much simpler tax season if Minnesota legislators decide to synchronize state laws with federal laws. Until then, Buckley advises all taxpayers to be prepared for complicated forms and seek help if needed.
"I really think that everyone should try to talk to a tax adviser to find out what's going on," she said. "Because I don't think that the normal layman is going to understand the new tax law."
--KEYC News 12