Individual income tax filing season does not begin until early next year, but the Minnesota Department of Revenue says it is not too early to start thinking about taxes now.
The Minnesota Department of Revenue has been working to update its state tax filing systems for taxpayer use in 2019, a process that happens annually, starting after the end of each legislative session. This year, the department is updating its systems to accommodate the differences between the federal and Minnesota tax laws.
“There were big changes to the federal tax laws at the end of last year, but Minnesota’s tax laws have not significantly changed,” says Revenue Commissioner Cynthia Bauerly. “The department has been working to ensure smooth filing next year from a technical standpoint, but there are things taxpayers should know ahead of filing season next year.”
Choose electronic filing and direct deposit
When you file your 2018 taxes, choose electronic filing and direct deposit. Last year, almost 90 percent of Minnesota taxpayers used electronic software to file their taxes. Using software is the easiest and most convenient way to file your taxes. Electronic filing also ensures that you have the most up-to-date forms and instructions when you file. Free electronic filing is available for Minnesotans meeting certain eligibility requirements.
Direct deposit is an easy, convenient, and secure way to get your refund. You can include your banking information on your tax return and get your refund deposited into your bank account. Direct deposit is available whether you file your return electronically or by mail.
Save your receipts
As announced in July, you may claim either the standard deduction or elect to itemize deductions on your 2018 Minnesota income tax return, regardless of the choice you make on your 2018 federal income tax return.
The department encourages you to save receipts and other documentation throughout the year to ensure you have the information you need to reduce your tax liability or increase your refund as much as the law allows. You will need these documents to prove any expenses and charitable contributions you may be able to deduct.
Make your final estimated payment for 2018
You must pay estimated tax if you expect to owe $500 or more in Minnesota income tax after subtracting your withholding and refundable credits. To avoid a penalty, your estimated tax payments plus your withholding and refundable credits must equal either of the following:
. 90 percent of your tax liability for the current year
. 100 percent of your tax liability for the previous year (110 percent if your adjusted gross income was more than $150,000)
. Most taxpayers’ final Minnesota estimated payment is due by January 15, 2019. However, you do not have to make this estimated payment if you file your Minnesota income tax return and pay the entire amount by January 31, 2019.
For more information on Minnesota estimated tax, go to www.revenue. state.mn.us and type estimated tax into the Search box.
Stay informed
To stay up to date on the latest information about the upcoming filing season, subscribe to the department’s Tax Law Changes email list. You can also see frequently asked questions about the filing season by going to www.revenue.state.mn.us and selecting the orange Tax Law Changes button.
Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook and Twitter or by signing up for our email subscription list.
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