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Minnesota Federal Adjustments (Estates and Trusts)
Extracted from PDF file 2022-minnesota-form-m2nc.pdf, last modified October 2022Federal Adjustments (Estates and Trusts)
2022 Schedule M2NC, Federal Adjustments *227151* Minnesota has generally adopted the Internal Revenue Code as amended through December 15, 2022. This schedule allows for any remaining adjustments required to file a state tax return. Tax year beginning , 2022, ending Name of Estate or Fiduciary Federal ID Number Before you complete this schedule, read the instructions which are on a separate sheet. Minnesota ID Number Enter amounts as a positive or negative. Round amounts to the nearest whole dollar. Adjustments to federal taxable income (FTI) 1 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Retroactive NOL carrybacks and suspension of 80% limit (CARES Act Sec. 2303) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Modification of business interest limitation (CARES Act Sec. 2306) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Employer credit for paid medical leave and Employer payroll credit for required paid family leave (FFCRA Sec. 7001, 7003) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0 11 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 12 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 13 Temporary allowance of full deduction for business meals (COVIDTRA Sec. 210) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 14 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 15 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5 16 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6 17 Credit for COBRA Continuation Coverage (ARPA Sec. 9501) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7 18 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 19 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 Rev. 2/23 9995 2022 M2NC, page 2 *227161* 20 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 21 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 22 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 23 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 24 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 25 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 26 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6 27 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 7 28 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 8 29 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9 30 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 0 31 This line intentionally left blank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 32 Total lines 1-31. If the result is positive, enter it on Form M2, line 44. If the amount is negative, enter it as a positive number on Form M2, line 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 You must include this schedule when you file Form M2. 9995 Nonconformity Adjustment Instructions Purpose of This Schedule In January 2023, Minnesota law was updated to recognize the Internal Revenue Code as amended through December 15, 2022. However, some nonconformity adjustments still apply due to retroactive Minnesota modifications enacted in the tax bill. Who Must File Schedule M2NC If any of the federal provisions in these instructions affect the amount of taxable income reported on your 2022 federal Form 1041, U.S. Tax Return for Estates and Trusts, you must adjust your 2022 Minnesota return using Schedule M2NC. Use the Schedule M2NC and these instructions to complete your Minnesota return. The adjustment for each line should reflect the change to your Minnesota return as a result of the retroactive Minnesota modifications. Each line will also include the net adjustments received from Schedule(s) KFNC, KPINC, and KSNC for your pro rata share or interest in another business or fiduciary. If you have to amend as a result of conformity within the January 2023 Minnesota tax bill, only adjust your amended return for the following reasons: 1. To update composite income tax for electing beneficiaries, or 2. To update fiduciary income tax when the trust or estate retains income. You may need to amend, and issue updated Schedules KF or KFNC if your beneficiary(s) need additional information to update their return(s). For example, if you claimed federal bonus depreciation on qualified improvement property (QIP) and adjusted the beneficiary’s bonus depreciation addition as a result of the QIP nonconformity adjustment. If you are amending solely due to the January 2023 Minnesota tax bill, write “Conformity” in red at the top of the Minnesota Form M2X. For more details, see the Form M2 instructions. If the change results in a reduction of your FTI, enter the adjustment as a negative number. If the change results in an increase of your FTI, enter the adjustment as a positive number. Save your entire 2022 Minnesota Form M2, Schedule M2NC, and all worksheets you use in determining the adjustments. Line Instructions Line 1 This line is intentionally left blank. Line 2 This line is intentionally left blank. Line 3 — Retroactive NOL Carrybacks and Suspension of 80% Limit (CARES Act Section 2303) If you carried back NOLs and/or fully offset your income using the NOLs, determine the difference to what was allowed prior to the CARES Act. Include the result as a positive number. Report only the portion being retained by the estate or trust and allocate 100% of this adjustment to the fiduciary. Line 4 This line is intentionally left blank. Line 5 — Modification of Business Interest Limitation (CARES Act Section 2306) The CARES Act created a special rule increasing the amount of business interest that can be deducted for the tax year for federal purposes from 30% to 50%. The Minnesota limitation has not changed. You must calculate a nonconformity adjustment if: • Your business interest expense deduction exceeds the sum of 30% of your adjusted taxable income, your business interest income, and your floor plan financing interest; or • You have Minnesota-only excess business interest expense carried forward from your 2019 through 2021 Minnesota returns. Determine the difference between your federal deduction and the deduction allowable using 30% of your adjusted taxable income. Use the federal Form 8990 as a worksheet to recalculate the Minnesota interest expense limitation under 2018 IRC. Write “Minnesota” at the top of this Form 8990 (referred to as Minnesota Form 8990) and include it with your return. If your interest expense allowable under 2018 IRC is less than your federal interest expense, enter the difference as a positive number on line 5. If your interest expense allowable under 2018 IRC is more than your federal interest expense, enter the difference as a negative number on line 5. Line 6 This line is intentionally left blank. 1 Line 7 — Employer Credit for Paid Medical Leave (FFCRA Section 7001; ARPA Section 9641) and Employer Payroll Credit for Required Paid Family Leave (FFCRA Section 7003; ARPA Section 9641) Section 7001. Employer Credit for Paid Medical Leave If you claimed the Employer Credit for Paid Medical Leave, include the amount of the credit which was included in your federal gross income as a negative amount. Section 7003. Employer Payroll Credit for Required Paid Family Leave If you claimed the Employer Payroll Credit for Required Paid Family Leave, include the amount of the credit which was included in your federal gross income as a negative amount. Line 8 This line is intentionally left blank. Line 9 This line is intentionally left blank. Line 10 This line is intentionally left blank. Line 11 This line is intentionally left blank. Line 12 This line is intentionally left blank. Line 13 — Temporary Allowance of Full Deduction for Business Meals (COVIDTRA Section 210) If you deducted more than 50% of the cost for food or beverages provided by a restaurant under this provision, enter the amount of the deduction that exceeds 50% of the cost as a positive number on line 13. Line 14 This line is intentionally left blank. Line 15 This line is intentionally left blank. Line 16 This line is intentionally left blank. Line 17 If you claimed the credit for continuation coverage under section 9501(a)(1) of ARPA, include the amount of the credit which was included in your federal gross income as a negative number. Lines 18 through 30 These lines are intentionally left blank. Line 31 This line is intentionally left blank. Line 32 — Total of lines 1 through 31 Add lines 1 through 31. If the result is positive, enter it on Form M2, line 44. If the result is negative, enter it as a positive number on Form M2, line 57. The nonconformity adjustment will be allocated between the fiduciary and beneficiaries in the percentages reported on the Form M2, line 69 and line 70. Any nonconformity adjustment allocated to beneficiaries should be reported on Schedule KFNC for the beneficiary’s pro rata share of each adjustment. 2
2022 M2NC, Federal Adjustments
More about the Minnesota Form M2NC Corporate Income Tax
We last updated the Federal Adjustments (Estates and Trusts) in March 2023, and the latest form we have available is for tax year 2022. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Minnesota Department of Revenue. You can print other Minnesota tax forms here.
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TaxFormFinder has an additional 95 Minnesota income tax forms that you may need, plus all federal income tax forms.
| Form Code | Form Name |
|---|---|
| Form M8 | S Corporation Return (M8 and M8A) |
| Form KF | Beneficiary's Share of Minnesota Taxable Income |
| Form KS | Shareholder's Share of Income, Credits and Modifications |
| Form DIV | Deduction for Dividends Received |
| Form REC | Reconciliation |
View all 96 Minnesota Income Tax Forms
Form Sources:
Minnesota usually releases forms for the current tax year between January and April. We last updated Minnesota Form M2NC from the Department of Revenue in March 2023.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Minnesota Form M2NC
We have a total of two past-year versions of Form M2NC in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2022 Form M2NC
2022 M2NC, Federal Adjustments
2021 Form M2NC
2021 M2NC, Federal Adjustments
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