allowed for tax year 2017 on your federal
return. This deduction is not allowed for
Minnesota purposes. Include the amount
from line 34 of Form 1040 or line 19 of
Form 1040A, on line 4 of this schedule.
Other adjustments under the TCDTR of
2019
How to Report the Federal Adjustments
If any of the federal provisions that are in-
cluded in the TCDTR aect the amount of
taxable income reported on your 2017 fed-
eral return, you must make an adjustment to
income on your 2017 Minnesota return. To
determine the adjustment amount, compute
your federal taxable income based on 2018
IRC. Report the dierence between this
amount and the amount allowed under 2019
IRC as an adjustment to income.
Subtotal all nonconformity adjustments
(positive and negative) calculated from
the provisions listed below. If the net of all
adjustments results in an increase of your
federal taxable income (FTI), enter the net
adjustment as a positive number on line
4. If the net of all adjustments results in a
reduction of your FTI, enter the net adjust-
ment as a negative number on line 4.
If you received Schedule KPI or Schedule
KS with code 17, include the amount from
line 8b as a positive amount or the amount
from line 10b as a negative amount on line
4. If you received Schedule KF with code
17, include the amount from line 8b as a
positive amount or the amount from line
16b as a negative amount on line 4.
For purposes of calculating adjustments,
use any federal regulation or ruling issued
by the Internal Revenue Service prior to the
passage of the TCDTR which governs the
referenced provisions.
To report the dierences for Minnesota tax
purposes, you must attach to your Form
M1 or Form M1X a list of the federal
provisions aecting your taxable income
by section number and show how you
calculated each adjustment amount.
Provisions that May Require an Income
Adjustment
The following provisions may require
an income adjustment for Minnesota
tax purposes. This list includes the most
common adjustments; you must make
adjustments as needed for all provisions
included in the TCDTR.
Secon 111. Indian Employment Credit
If you were not allowed to deduct expenses
due to the Indian Employment Credit on
your federal return, include the amount
of the disallowed expenses as a negative
number.
Secon 112. Railroad Track Maintenance
Credit
If you were not allowed to deduct
expenditures due to the Railroad Track
Maintenance Credit on your federal return,
include the amount of the disallowed
expenditures as a negative number.
Secon 113. Mine Rescue Team Training
Credit
If you were not allowed to deduct expenses
due to the Mine Rescue Team Training
Credit on your federal return, include the
amount of the disallowed expenses as a
negative number.
Secon 114. Classicaon of Certain Race
Horses as 3-year Property
If you own race horses and you claimed
a 3-year recovery period on your federal
return, calculate the dierence between the
3-year recovery period and the recovery
period you would have been allowed under
2018 IRC. If your recovery period reported
on your federal return is greater than the
recalculated amount, include the dierence
as a positive number. If your recovery
period reported on your federal return is
less than the recalculated amount, include
the dierence as a negative number.
Secon 115. 7-year Recovery Period for
Motorsports Entertainment Complexes
If you have a motorsports entertainment
complex and you claimed a 7-year recovery
period on your federal return, calculate
the dierence between the 7-year recovery
period and the recovery period you would
have been allowed under 2018 IRC. If your
recovery period reported on your federal
return is greater than the recalculated
amount, include the dierence as a positive
number. If your recovery period reported
on your federal return is less than the
recalculated amount, include the dierence
as a negative number.
Secon 116. Accelerated Depreciaon for
Business Property on Indian Reservaons
If you have qualied Indian reservation
property and claimed accelerated deprecia-
tion, calculate the depreciation you would
have been allowed under 2018 IRC. If your
depreciation reported on your federal return
is greater than the recalculated amount,
include the dierence as a positive number.
Purpose of This Schedule
Rules used in determining Minnesota indi-
vidual income tax are based on the Internal
Revenue Code. Federal tax law was enacted
and contained provisions aecting tax year
2017. Minnesota tax law enacted on May
31, 2019 disallows the tax eect of the
provisions listed on this schedule.
If you are aected by the provisions listed
below, you will need to use Schedule
M1NC, Federal Adjustments, to make
needed adjustments when ling Form M1,
Individual Income Tax.
Under current law, denitions used in
determining Minnesota taxable income are
based on the Internal Revenue Code (IRC),
as amended through December 31, 2018
(2018 IRC). Since that date, Congress has
enacted the Taxpayer Certainty and Disaster
Tax Relief Act (TCDTR) and the Corona-
virus, Aid, Relief and Economic Security
(CARES) Act, which contains changes
aecting businesses for tax year 2017.
Because Minnesota has not adopted these
federal changes, adjustments are required to
correctly determine your Minnesota taxable
income. Use the instructions on line 4 to
calculate nonconformity adjustments relat-
ing to the TCDTR and CARES Act.
If you are amending your 2017 federal
return solely for federal changes un-
der the TCDTR or CARES Act, write
“TCDTR” or “CARES” in red at the top
of the Minnesota Form M1X.
Who Must File Schedule M1NC
You must complete Schedule M1NC if any
of the following apply:
• You claimed a deduction for tuition and
fees on line 34 of federal Form 1040 or
line 19 of Form 1040A.
• You deducted mortgage insurance premi-
ums on line 13 of federal Schedule A.
• You recognized deferred foreign income
under Internal Revenue Code, section
965.
Line Instrucons
Lines “This line intenonally le
blank”
Do not enter amounts for lines labeled
“This line intentionally left blank.” These
lines were required prior to Minnesota tax
law changes enacted on May 31, 2019.
Line 4
Tuion and Fees Deducon
The federal deduction for tuition and fees is
2017 Schedule M1NC Instrucons
On May 30, 2019, Minnesota law was updated to recognize the Internal Revenue Code as amended through December 31, 2018.
The law disallows the tax eect of the federal provisions on this schedule.
