MN-1
District Coordinator
Meeting
September 26, 2014
Volunteer Coordinator
Kerrin Lee
651-556-3052 or 1-800-818-6871
kerrin.lee@state.mn.us
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Department Updates
• Direct Deposit Promotion
• Governor Dayton’s “Unsession”
• What have we been doing?
• Power of Attorney
• Payment Voucher Project
• What laws were eliminated?
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“Opportunities to
give us feedback”
Department Updates
• Federal Conformity (1st Tax Bill)
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March 21, 2014 tax bill
Aligns Minnesota’s tax code more closely to federal code
1.1 million returns filed with the new law changes
Reviewed 280,000 returns that were already filed
• Letters to Homeowners
• Potential eligibility for Homestead Credit Refund
• All letters were mailed by August 22, 2014
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Tax Law Updates
• Omnibus (2nd) Tax Bill
• Signed May 20, 2014
• Retroactive Changes for 2013
• Property Tax Refunds
• Changes for 2014 and forward
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Tax Law Updates
Temporary Reading Credit
The Basics
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Tax year 2014 only
75% of qualifying expenses
Maximum credit of $2,000
Credit calculated on Schedule M1READ
Fact sheet will be released soon
• Visit our website and search Reading Credit
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Tax Law Updates
Temporary Reading Credit
Qualifying Child
• A child who:
• meets the definition of a qualifying child for K-12
Education Credit,
• has been evaluated by a school district for a specific
learning disability,
• was found, through the evaluation, to have a deficiency
in reading skills, reading fluency or reading
comprehension that impairs his or her ability to meet
expected age or grade-level standards, and
• does NOT qualify for an Individualized Education
Program (IEP)
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Tax Law Updates
Temporary Reading Credit
Qualifying Expenses
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Tutoring, instruction, or treatment
Not compensated by insurance, or pre-tax accounts
Actual expenses that can be documented
Not used to claim the K-12 Credit or Subtraction
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Tax Law Updates
Temporary Reading Credit
Qualifying Tutoring and Instruction Expenses
• Instruction by a qualified instructor that helps the child
meet state academic standards in various subjects
Qualifying Instructor
• Cannot be a lineal ancestor or sibling of the child
• Must meet one of the following tests:
• Have a valid teaching license for the grade level and subject
taught (or is supervised by someone who is)
• Have successfully completed a teacher competency evaluation,
• Provide instruction at an accredited school, or
• Have a bachelor’s degree
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Tax Law Updates
Temporary Reading Credit
Qualifying Treatment
To qualify for the credit, the treatment must:
• be intended to improve the child’s basic reading skills, reading
comprehension and reading fluency,
• use recognized diagnostic assessments to determine what
intervention would be most appropriate for the child, and
• use a research based method to teach language decoding skills in a
systematic manner.
If you are unsure whether or not a child’s treatment qualifies,
contact the treatment provider.
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Tax Law Updates
Child and Dependent Care Credit
• Minnesota Child and Dependent Care Credit aligns
more closely to the federal credit
• Maximum qualifying expenses increased:
• 1 Qualifying Child - $3,000 maximum
• 2 or more Qualifying Children - $6,000 maximum
• Percent of qualifying expenses allowed in calculating
the credit increased
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Tax Law Updates
Additions and Subtractions
Minnesota Income Tax Additions
• Married couples claiming the standard deduction are no longer
required to add back a portion of their deduction
Minnesota Income Tax Subtractions
• Employer-provided mass transit benefits that are included in
federal taxable income can be subtracted. The per month
subtraction amount is limited to the lessor of:
• $120, or
• the benefits received in excess of $130
• Military pay earned under Title 32 AGR Status in the Minnesota
National Guard or Reserves can now be subtracted
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Tax Law Updates
2013 Property Tax Refund
What changed?
• Renter’s Property Tax Refunds increased by 6%
• Homestead Credit Refunds increased by 3%
What if my clients already filed?
• We will make changes to returns filed before 6/4/2014 and those
that used outdated refund tables
What if my clients haven’t filed yet?
• Use our updated refund tables on our website if filing by paper
• Ensure that you have the most up-to-date version of TaxWise
installed if filing electronically13
Tax Law Updates
Supplemental Agricultural Credit
What is it?
• Agricultural homesteaded properties
• Property taxes payable 2014
• Lesser of $205, or net taxes excluding house, garage, and
surrounding acre
Additional Information
• Credit will be administered by counties as a reduction in property
taxes payable going forward
• Relative Agricultural Homestead classification qualifies
• Must not owe delinquent property taxes
What do you need to do?
• Nothing- we will mail checks by 10/15/14
• If you have questions, review our website or contact the county
auditor
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Tax Law Updates
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Tax Professional Enforcement
• What is it?
• Tax professionals must follow standards of ethics and conduct
• If you don’t, you may be subject to penalties, criminal
prosecution, or suspension from representation
• Who may this affect?
• Attorneys, accountants, enrolled agents, and any person
preparing returns for compensation
• Anyone who represents taxpayers in dealings with us
• Why are we sharing this with you?
• We want you to be informed and share this information
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Tax Professional Enforcement
What can we do?
If a tax professional
Then we can
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Knowingly files false or fraudulent tax
returns
Advises a taxpayer to evade taxes
Does not file a required tax return
Attempts to threaten or bribe a
department employee
Does not demonstrate adequate
familiarity with state tax laws and rules
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Is convicted of a crime related to tax
return preparation
Is assessed a civil penalty of more than
$1,000 for certain actions related to tax
return preparation
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Suspend them from “representing”
taxpayers before the Department for up
to 5 years or bar them indefinitely
Place their name on our Tax
Professionals Sanction List
Place their name on our Tax
Professionals Sanction List
Administrative Updates
• DOR Letter Procedures
• Quality Review of M1 and M1PR
• Point of emphasis
• Modernized e-file
• Unlinking to send M1PR only
• Do not e-file federal returns with $1 of interest or income
• Site Visits
• See how the site operates
• Looking for best practices
• Available for questions or concerns
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State Training
• January Training Sessions
• Contact Kerrin to set up a date and to discuss material you
wish to be covered
• MN Review Questions
• Incorporate into your state training
• Volunteers will need to answer the questions
• MN Intake Sheet
• Questions on the sheet should flag potential issues
• Feel free to make copies and distribute as needed
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Volunteer Training Packets
• Packets will be mailed to volunteers using the volunteer
addresses provided by the IRS
• After mid-November, send any new volunteer names and
addresses directly to Kerrin to get MN training materials
• MN training materials will be mailed mid-December to all
volunteers
• Extra copies of training packets are available
• Call or email Kerrin to have additional copies sent out
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Form M281V:
Blank 2014 MN Forms
• Changes to order form for filing season 2014
• No payment vouchers
• Please correctly fill out the form and order only what
you need
• Forms are also available on our website or at libraries
• Contact Kerrin if you have a shortage of forms later in
the year
• Order the appropriate form and booklet if you are
doing prior year returns by paper
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Site List on DOR Website
• Please update your tax site information in the AARP
Portal system
• If specific information applies to your site, make sure to
note it in the additional information section
• Military-certified volunteers: Please note this in the
additional information section or email Kerrin
• Update opening and closing dates for each site
• Will send out reminder to all DC’s before tax season
starts
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Helpful Resources
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Minnesota Volunteer Hotline
VITA/AARP Tax Aide Hotline
• 651-556-3050
• 1-800-657-3829
• Hours: Monday – Friday, 8:00 am – 4:30 pm
Email questions to: individual.incometax@state.mn.us
Please encourage volunteers to use the hotline.
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Outreach and Education Staff
Hillary Jasicki (Outreach & Education Leadworker)
651-556-6471, hillary.jasicki@state.mn.us
Celeste Marin (Latino Outreach Coordinator)
651-556-6616, celeste.marin@state.mn.us
Chueyee Moua (Asian Outreach Coordinator)
651-556-6613, chueyee.moua@state.mn.us
Jake Feneis (Paid Preparer Outreach Coordinator)
651-556-6606, jake.feneis@state.mn.us
Karen Kittel (Withholding Tax Outreach Coordinator)
651-556-3668, karen.kittel@state.mn.us
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Thank You
For All Of Your
HARD WORK!