On this Weekend program, Dave Semerad, official in the Minnesota Revenue Department's Taxpayer Assistance group, talks about preparing Minnesota income tax returns, and answers income tax questions from listeners.
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Well, we talked about federal income taxes on this program. I think it was about two weeks ago and mentioned at the time that we're going to give you a chance to get in your questions on the state income tax form as well and indeed it today. We are happy to have with us a guest who will they want me to take a crack at your questions about the state return Dave semeru that supervises the people who actually answer the telephone set the Minnesota Revenue Department and will give out the phone number for you to call in just a moment. If you have a question about the state income tax return.David how many people file state income tax returns all together by the time they're due on the 15th of April. Well, total income tax and property tax refunds all year. Will you receive about 2700000 Returns come by and play the two I would say income tax returns. I understand. It's about a million eight. How many come in so far do you suppose we've received a hundred thousand for the last report I had is this a busy time of year for you or is it pretty slack right up until the very end know the first two three weeks in February when our busiest times a year because most people receive their W-2s and the ones we're going to receive refunds prior to filing as quickly as I can. So this is one of our busier times for instance just this last week we received almost 20,000 phone increase tax questions. How large is the average refund this year? Do you think I haven't got that that date did it yet. Probably is going to be smaller than the average won last year because renters can no longer claim the rent credit on their income tax return.That was a lot changed at the 81 legislature passed. So quite a few people who receive refunds for the income tax return last year aren't going to get them this year until like in August from the rent and they end up having to pay in. So I'd advise people that maybe they want to check that out now so that they don't have a little unpleasant surprise when I do file a bug. I'm assuming it's somebody files within the next few days to a week or thereabouts. Roughly. How long will it take to get a refund check while they were earlier they file with the course the quicker than get it, but we estimate the refunds are going to take again.But what's 68 weeks 6 to 8 weeks and as the deadline approaches, does that lengthen to yes the longer you wait the longer it's going to take to get your refund because as the year goes by more more people are filing a the heaviest filings are right now and imports April 15th. So if you want to avoid delays in receiving a refund, you should file it really well. We'll invite people to have questions to pick up the phone and give a call to the radio station today particularly those of you listening to the NPR FM Network. You should call rather quickly because at 12:30 you will be going off too early matinee today at the Metropolitan Opera in New York to 276 thousand is the phone number for Minneapolis-Saint Paul area this news yet. Another parts of Minnesota. The toll free number is one 800-652-9700. And of course for those of you who are listening in the Twin Cities December will continue10 questions right up until 1 on our AM station ksjn 1330 so you can turn that in and continue to get some income tax advice. Alright some callers already on the Lioness take our first listener High go ahead, please. I'm glad to have to figure out how to estimate my estimated payment follow the instructions and the percentages that are given are so confusing that I don't know what I have to pay on April 15th, June 15th, September 15th and January 15th 1984. I called the office and talk with a number of people and they were just as confused as I about the computation.That I would like to know because when I figured all of the amount that I had to pay I came up with a total of $1,000 more than actually my tax amounts to so I wondered if he could clarify whether we will just pay run 4th and Van for the about your running to add your 10% for that six month. And I assumed that you would subtract. Are you divide the 10% for your voucher run and voucher to and you just take a fourth of what you have to pay if I have to pay $1,000 then for about your run. It would be a fourth of that has 5% of that amount which would take care of the 10% that Spencer test that we're supposed to pay it for the first 6 months, but I would like an explanation of that competition of installments. Generally what I tell people to simplify. This is toTo just pay last year's the same amount you paid last year. This will make sure that you avoid any penalty for underestimated and it's a much simpler than what you're trying to do. Now. It's to avoid penalty for underpayment of estimated tax. You can meet one or two exceptions. You can either pay the same amount that you had last year or 80% what you expect know your case. I think it'd be much easier if you just take what you old last year your liability before any withholding anything or estimated divided into four and make 4 equal equal payments of that night that we much easier for you. All right simple advice to a very difficult question. That's the kind of thing. We're hoping to get to today with some more listeners with questions. Go ahead your next.Riedel I just got in on the tail end of the gentleman's remark about to rent credit changes this year or nearly I file my forms trp as quickly as I get all the other tax information and I wondered if you could repeat for us renters what we should do differently this year. All right. I was mentioning at the top program. What I would advise him to do is to go through the return right now because of a lot of renters are going to find out that they're probably going to have a balance to wear as they had a refund last year rent refunds are not going to be issued until the middle of August this year.And that I guess was the one of the so-called shifts. Mm. Yeah. Yeah, that was one of the ships that they were talking about that in the December special session. So people who were counting on their rent credit refund will not get it. Don't plan on it. Like I said, the best thing is is to go through it and see if you all cuz saying I like said you may be in for a little bit of a surprise this year. All right 9 minutes past the hour. We have another listen to wait and go ahead. Please tap make sure that there's no confusion. We're honest is all we ask people to do is wait until you have received your refund going to refund. I will wait till you get that refund and then file an amended return amended return that you use is called an M1 X. It's a blue form. You can get that by calling our forms order number, which is 229-737-3724.Seven-day-a-week number but it's very busy during working hours. So I'll try it any other time you want you should be able to get in but that's what you should do. But I really advise you strongly to wait until you get your refund because if you don't hit it jams up a system model building at all in sure it goes through quicker for you with questions about the Minnesota income tax form High. Go ahead. Please last August I filed for the refund and to the state of not heading response. Whom do I contact them. What's the process? If you want you to call me Monday or Tuesday at the office and I'll look it up personally for you. The number is 296-3781 is nothing I can really check on right now. But if you do that will look it up for him. Will I will find out what find out what happened? OK listener with a question why you're on the air?My husband and I are using student loans Financial education when you get a loan for the Minnesota Student Loan program is for say $5,000, but they have subtracted origination fees. So you'll get maybe $4,000 $4,600 and later. You'll be paying back the entire $5,000. What puzzles me is whether I can put that $400 that they subtracted. They're calling it an origination fee like a processing charge or something.card processing What is the charge for a y l is a 2? Will add ons bring the allowed to have never heard of points being charged any other kind of loan normally origination fees on loans are not deductible unless you can show that they do indeed constitute interest. That's what I'm wondering about and they do this to all people getting student loans from Minnesota for the long program. Like I said, you usually these are deductible. And in this case, I think probably not too. I think it's more like a processing charger or see you like that. I like it so you can show interest then you can deduct it. But the burden of that is God's will be upon you to show that and it should probably indicate that fairly clearly on the state right side when you look through your phone contract what that charges really for. When is River days to collections my favorite? No processing fees may be charged. So we all can't be for processing. Well, if you'd like I said if you can find out whether or not that represents interest and it's deductible if it isn't you can't hide. M1b last year we did it wrong and we just realized that and I miss her is form. There's a line that says put in the figure from last year's Forum. We put in what should have been more momentum and mysterious. That's right. That's exactly correct m1b. I remember that from last year. What what was last year I was at a cruel business with the state changed its method of detecting federal taxes from cash to accrual and because it has spawned a couple of forms to the M1 being in 1 C which were pretty unpopular with the press and the public-at-large this year Boston 1B and 1C are somewhat simpler and it's nowhere near as popular question as it was last year, but then one pee is so I think about six or seven Lions shorter and then one sees about 15 the only time that you don't use it in one of these if you wanted people to pay self-employment tax, otherwise, everybody else uses it again, if you do exactly what the Lions tell you you should be should be able to do. without too much of a problem Yes, ma'am. It's one of those things. I remember from last year. That was Far easier to do in practice that it was to understand and concept more listeners are standing by with questions higher on the air at work here in the state in December in Minneapolis for an out-of-state from originate from Ohio state income taxes paid to the Texas state government or Minneapolis Minnesota. Well, what's strange about this is that Texas does not have income tax and doesn't have any withholding. So it sounds like whoever fills out the W2 for you did in correctly. I would contact them and ask him what state they really did send that with all them too cuz it could not possibly send it to Texas. Okay, right. Okay. Thank you. You're welcome. Any more people with questions about the Minnesota income tax today to 276 thousand is the phone number. If you have a question in the Minneapolis-Saint Paul area and other parts of Minnesota toll-free, 1-800, 652-9700 telephone lines are pretty busy. But if you get a busy signal keep trying you'll probably get in sooner or later other listener is waiting. Go ahead, please. Also full-time student and Hindi itemized deduction instructions. They stipulate that you cannot deduct any education that you were taking that you don't need to keep your job, but they also say that in order for you to advance in your job that you can deduct that education and it's just a little ambiguous. Just wondering if you had any kind of educational expenses. You must have met the minimum requirements and usually less determined if you've already have a position or a job in in the area that you're at dealing with an example. I use an awful lot is between like an LPN and an RN once you become an LPN any educational expenses that you and Kirk to improve your skills as an LPN would be deductible. However, if you're taking courses to become a registered nurse They would not be so you are advancing yourself. The main line is to improve and maintain present skills, but not to advance yourself to a different level. It must be lots of Grey areas in that particular thing as you cannot memorize these things is the theory of the law behind it and you apply it to a demon the most absurd things can be deductible. Like I want the questions we had in January is what little person could deduct dog food and right away I could have went well dog food then I asked for why did you buy the dog in the person was blind? So that's a medical expense the upkeep the seeing eye dog. And therefore she died. I just met examples in the most absurd things can end up being deductible. So the only way you're going to find out if it is or isn't if you think it's got a chance to call stop. All right. We have another listener with a question for Dave summer. Go ahead. tax-exempt status of Summer I was in search of a job and I traveled around the country looking or going to interview now. I didn't use an employment agency. So I didn't have those fees to pay but I didn't care travel expenses lodging expenses in search of a job at those are those expenses tax exempt in Minnesota and that you had your previous job in school right now, but you must have already met the minimum requirements and been employed before you can deduct them people getting out of college or Vocational School cannot deduct job-hunting expenses. Okay. Thank you very much. You're welcome. We have seen of course in the economy generally a shift from certain types of jobs two different ones. And if a person has been working in the oil, I don't know say the mining industry or something like that and they shift to sales can they deduct the expenses of searching for work in that new area? What's its seeds gallery on staying the same area to stay in the same area. Go ahead. Please check with check stubs and check. I need to verify some medical expenses. Is there any other methods of proving these expenses other than I detect Petit that are required. If you receipts from the doctor's office with the pharmacy at the hospital that'll verify two checks not will not always do if you write a check out to a drugstore doesn't necessarily mean you bought a prescription. So I wouldn't always just keep my checks in certain instances. You should also keep the receipts. We do have some open Lions believe it or not in the Minneapolis-Saint Paul area 22726 thousand is the number you have a question about the state income tax Dave. Sim route will be happy to take a crack at it in other parts of Minnesota toll-free 1-800 652-9700 and our next listener is waiting go ahead please and I'm one of the previous questions and then also questioned my own the young lady called in about the $5,000 Student Loan program for the Minnesota programming but only receive 4600 and she wondered whether that $400 difference might be interest. I'm not familiar with the Minnesota Student Loan program, but very often Bankers will make loans. And then subtract the interest from the principal and then for you when you pay back the full amount the difference is interest until my guess would be that would be considered interest, but I may be wrong cuz I don't know that specific program. What is your question answer question is is IR a $2,000 deductible on the federal tax return and the interest earned on it deductible on the Minnesota state return kind of glad you asked that I already has probably replaced m1b from last year's almost asked about area. No Minnesota. It is different than the federal and how you can deduct your IRA is Minnesota. It's limited to 15% of your earned income up to $1,500. I can you cannot be covered by a qualified plan where you work so, you know, I'm not okay, then you'd be okay 15% de 1500. You may still have to make an addition. Also. I put in $2,000 in the 15% was less than 2000. I can only deduct the amount that's less her right you'd would you know, if you made more than $10,000 an hour job. You would have to head back 500 another question. You asked about the interest in the ira. Is that even though part of the IRA is not deductible in Minnesota. There's another provision in the statutes when the law that says that the interest is not taxable. So therefore I would probably have less than 2000 interest rate of interest interest Ira earns while you have it in the bank or the insurance company, whatever is not taxable Minnesota, even though part of the contributions deductible. Okay. Thank you clarify a part of that answer again Dave. What were you said something about a qualified employer write a qualified pension plan is a lot of places for people are worth. They've got pension plans and back in the early 60s late 60s early 70s was a lot of controversy over. Buy the screen to get certain classes of employees. So they passed a bill called a erissa 1974 and making certain the plans meet certain qualifications in order to qualify to get to be able to deduct deductions and it's investing and things like that almost all pension plans are civil service annuities are qualified. P e r a s qualified profit-sharing is a qualified plan IRAs or qualified simplified employee pension plans are qualified almost everything, isn't it? Probably easier to tell you a couple that aren't tax-sheltered annuity is not a qualified plan. Neither is deferred compensation have a question about whether your plan is qualified or not. Call us up. We can tell you okay, but if you have a pension plan at work, you can still qualify for some deduction on Ira. If you have one of these plans where you work, you cannot deduct any of your IRA contribution, you'd have to add it all back. How about the interest the interest would still be not taxable? Okay. Well, I can see how those questions about that. We have more listeners on Alanis take another call. I run the air. That's what I could find. Damn. That's interesting Spence and it needs to be amortized over the life of the loan. So she couldn't take it all in the first year but needs to extend it over the life of loan. I guess. My question is that does that sound right? If it truly is interest expense than you would deduct it that way? Yes. So I guess another situation I have coming up is trying to get a second mortgage and they are being a discount points attached to that loan to those have to be advertised or do I take those off this is what a primary and we can Intuit points is that point sometimes our interest and sometimes aren't the bottom line is theory behind it is do they constitute interest or are they a service charge on most mortgages that we've run into they constitute a service charge and end up not being deductible to represent interest. You can deduct them in the first year mortgage closing costs on paid. So are you familiar with this feature that has to be amortized over the life of the loan in the federal regulations with discount title loans? I'm not really know if you want more information that I suggest you call that your Internal Revenue Service Office. It is 24 minutes past 12 and we have more listings with questions High you are on the are go ahead please. I have a question regarding the m1pr couple had always file jointly and no she's a weirdo. Can she just followed by yourself without any complications? Certainly? What I would advise her to do is to leave off the deceased person's social security number and name just put her own on and has to claim it. There should be no problems on that as long as the Home Alone. Jointly. They should be no difficulty on a joint operation like that either the husband or the wife can file it either want to be claimed as long as a home is jointly owned. Alright, thank you. Another year has a question for Dave Sandberg. Go ahead telephone be deductible. And how about the Saint Paul City fee on utilities? Yes, or no state tax number from your sales tax for the phone bill or no known either case you that's talking about actions. And I also just wanted to say hello. I realize that you just following the legislature hear that this summer schedule and 1B is the most confusing thing I've ever seen in filling out any income tax federal or state fair last 15 years, Nation last year was bad this year. That's my opinion. Thank you. All right one no vote on the m1b David Mark that one down. Another listener is standing by go ahead, please. Get asked very often and that is what happened when we can't pay our taxes what kind of payment methods are available or what I would advise you to do Monday morning is to call for a compliance section and tell him that you can't do it and let them set something up for you. Okay, so there are if it's after April 15th issue will that's why you should do it as soon as you can. No penalty or interest is assessed until after the 15th of April, but I call it the numbers tonight 63455. Thanks very much. What are the interest penalties for people who do not pay for one reason or another V. If a person has a choice between not filing? And finally not paying I'd advise him to file and not pay because the late payment penalty is 10% How does a non-filing is 10% the first month and 5% every month thereafter up to 25% So if you can't pay file the return pay as much as you can and then get ahold of the people in the in a compliance section 80 don't set something on that big and set something up for you. Those of you who are listening to the NPR FM network will be going off in just a few minutes to live performance at the Metropolitan Opera starting half an hour early today will continue answering tax questions Minnesota income tax questions in the Minneapolis-Saint Paul area on our AM station ksjn 1330. So those of you in the Minneapolis-Saint Paul area might want to think about switching over your radios here pretty quickly. If you're still interested in talking taxes. Meanwhile more listeners are waiting. Go ahead. You're next. Dune at the University of Minnesota and I pay rent and I was wondering on the on the renters certificate of the renter's credit. It's on the property tax refund form. I'm a dependent. So I think I don't get the credit on that. If I if I gave it to my dad would he be able to get the credit one of you if your a full-time student tween ages 18 to 21, you don't get certificate of rent paid or that you would not be considered eligible for the property tax refund in your dad can't do it because the law says you have to live in live in the property in which all right. We have time for another one. Go ahead please your next. Unscheduled m1b online 10. It says if you use schedule in 1B to figure your 81 Federal deduction, they refer you to web. Where did wait for you? Why don't you having 22 of your 81 they referred to you then they say to you Andy federal taxes without the night. My 1981 is different than my 1980. Why would they that have they use the amount of the 1980 member in 1981 if you had a balance due for 1980 you deducted 1/6 at a time. So that's line at the referring to shows the 1/6 you put the same number on your 1982 and one b a Newby, okay, we will have to break away here for the Metropolitan Opera weekend is made possible by economics laboratory products and services for household institutional and Industrial Cleaning worldwide. Will continue now taking questions about the Minnesota income tax right up until 1 and lots of people are on the line the phone number for those of you who may have a question to 276 thousand Minneapolis Saint Paul Area that stays go ahead please your next. My Lan because his when I finish taxes went up and I have to pay for that how come he can deduct on his income tax, but I pay for it and I can't Do you pay the utilities directly yourself or does? and in Hot Water Music He Ducks Electric hangout lineup and he and I paid to him and he did not active and he's a doctor interests when they pay for the taxes if they can use your landlord just like any other business man can deduct expenses necessary to run his operation. So I was nothing wrong with that and it sounds to me like a darker color has some sort of the landlord tenant relationship problem at more than an individual income tax problem at this point. They've summer is with us. He is the supervisor of the people who answer the phones at the revenue department people who have Captions about the Minnesota income tax and we have another listener with a question. Go ahead please all of it didn't come outside the state and in fact outside the country still have to pay Minnesota income tax. My husband's brother is employed by the state department and he's now in Europe. He may be assigned temporarily to Washington DC starting later this year. When we lived in New Jersey His official residence was with us. We've moved to Minnesota within the past year and I'd like to know whether he has to pay state income tax, even though he's earning all his income outside the state from what soda are assignable I should say Now when he's overseas, has he ever realize you said what works for the state department? All I can tell you is that all isn't coming to be a sign of the Minnesota and if it's going to be taxable on his federal return will be taxable on a state return. I see. Okay. Thank you 7 minutes before 1 we have some phone lines open, I think in the Twin Cities area to 276 thousand. If you have a question about Minnesota income tax this noon, Dave Summerwood will try to answer for you. Go ahead please your next you rent. I pay no rent. Do I consider the the sum of my rent income? Okay, you're required to live there by that by the landlord. Okay. No, that is not income when you required to it to live it at where you work but as a requirement of the job that's not income. However, you do have to show it on the property tax refund when you calculate your rent credit. What's your eligible for? Even though you pay no rent? I am yeah your services are mice. My only income is I get a monthly payment on a on a house that I sold for contract for deed not forgotten what my question was. I can't think of it. So well, if you think of it again why I try I try dialing back and if you get at 2 to get through Wi-Fi, and if not, why maybe you can call the revenue department. Number for the form? I have no W-2 form or anything of the sort. Is there any form on which I declare that stated? Well part of the income that you received from. The home is going to capital gain. We showed up on Schedule D which is a federal form in the interest will show up on schedule B, which is also a federal form. This is all done on your 1040. So after you finished your your Federal Form, you just bring it right to ask for the okay. OK 25 minutes before 1 and your next go ahead, please. And estimating my income last year. I thought it would be close to what it was and if making is the estimate for estimated income tax for 80 to go to be close to 81 and I paid about 30% more but I wind up owing the state $600. Do I have the tax on that? You'll end up going to have a balance due when you return a $600. Do you pay a tax on the balance? Do I don't know if I quite understand what you're asking. Is there a penalty for April 15th and really shouldn't be? Okay, glad we could help you. Let's take another duster. Go ahead. Please text statements in the city or the county resides in the Homewood did have to add all their incomes together on the property tax refund to figure out what they're going to get. But only one of them to be a claimant. They make some arrangements between the South differ do a refund, they can split it up right now. And what's that what the person who is the claimant does with it with the state doesn't have too much control over the Boston Common. Well know that isn't going to work for this because the law says in a case, like this would have multiple ownership and they all reside in the home that when you're calculating household income. You have to show all of their incomes. Yes, ma'am. So it doesn't sound like there's any way to finagle it David Naughton this way. Alright, let's move on to another listing for the question why you're on the Air Hawk at Minnesota Department of Revenue. Centennial office building Saint Paul, Minnesota +551-455-545-5145 if I work 32 Beyond that I am doing private therapy for the same Agency, whereby on the collections we split 6046 East agency in 42 myself, and I am wondering if I can deduct cost of public relations in order to let the community know that I am doing private private to therapy as a side liner a business whether it's you know sideliner what they do most of the time can deduct expenses as long as they meet the requirements of being ordinary and necessary and directly related to what they do. So if this public relations it it does pass these tests sure you can deduct it if the center is keeping 60% of the proceeds. And I'm keeping 40 am I supposed to pay the total if I see a on that amount that I received that's a federal tax Social Security. So I would ask you to direct your question to the Internal Revenue Service office. If she has to be from nipple area. Write out state to 91142 to I really couldn't tell you what you have to do in that. Alright more lessons with questions. And I also see that we have another liner to open to 276 thousand is the phone number to call if you were listening earlier and had a question try to call got too busy signal try again to 276 thousand at least two or three of you will be getting in we have another listener wait and go ahead please. This time I'm trying to get ready get ready for my text because I'm aware that I've never done this before. On things that I bought when I moved into a new apartment that do I can I declare the attacks on the washer and dryer and television and that person that the louder you got two options. You can take the amount that they provide no sales tax tables or you can keep receipts that you for everything you purchased during the year and had them up they come out to be more than the table out. You deduct those. I see. All right. Thank you very much you for calling and we have another listener. Go ahead please your next. Let that sink to schedule m1b is just impossible to follow up question refers to on Ambi. the language says fall in line If you do not make any payments of federal income tax in 1981 for any earlier, that means that if you did not pay for any taxes, we're not paid at 80 or 79 and 1981 taxes from any other year other than 81. You don't have to worry about that part is not taxable in Minnesota that would be and I am retired and on pension and that pension is not subject to taxation. Is that right? That's correct. also private was not taxable You can only if your if your pension is less than the 11,000 you have to use the lesser amount. I don't know. What's my charger except for that life might be able to do for you is that the people who are retired low income as they could check one of the Vitae sites that are now open. If you want to find out what your nearest vitacyte is and you live in St. Paul. The number to call is to 97372 for if you live in Minneapolis with Minneapolis Harriet's to 97372 5 day. I like to say now is that do the budget problems at the state has had all of the states walking assistance offices are closed Statewide. That means both the downtown Minneapolis in downtown Saint Paul office has what they can do it for seniors or low income people is to go to these vitascience anybody else about all the assistance we can offer them is over the phone. They either know is that okay? Tablet Richard returns prepared but that was one of the budget problems they had. Okay, but now the Vitae that's that means what what's up program organized under the federal government assistance is so I like this is like the 4th or 5th Year the program. It says people who just give their own time at night or on weekends or during the day even to help elderly or disabled or low income people felt returns, but for low-income your household income has got to be below 15000. Otherwise, they won't do your return and they won't do complicated ones either. Maybe you should mention those phone numbers if I could help people write if I live in St. Paul the number to find the nearest vitacyte at is 29737 to 4. If you live in Minneapolis, and I was to 97372 5 ilike say that these also are 24-hour seven-day-a-week phone numbers. Okay, and we could tell you the same things. Alright more listeners with questions on the radio today how your next tax form just when this program came on and I had work through this start of the Minnesota income tax form and became confused at item one. In other words. I file a joint federal income tax return for myself and my wife and I have a figure it out online 32 StayWell. The State Farm says use one of these figures likes a line 32, but I'm filing a combined State form. Now. Your instructions really did not tell me exactly how to handle this. Because I have the split up income and the variations that you can do with that in Minnesota as compared to what is done on the Federal Form turn. Is it for married people is generally better to file joint federal return and I'm going to sell it. It's almost always better to file a combined return. So it's going to be complicated because you're going from one line of income to dividing it into two between yourself and your wife the way that you do do that. And if I can maybe Supply a little bit is that you chose your income on your side her income on her side. If the income is joint, you split it 50-50 on items of expand such as IRAs or employee business expense or losses were things like that. You would split them as their own if it's your loss you show it on your side. If it's joint you split it fifty-fifty best way to do is to start over from scratch almost in due to Federal returns as if you were to single people and you should come down to line one. It's yeah, it does make a little bit harder than if they would have filed a joint return but that Minnesota is not a community property state. So it's there to look at those two individuals and you can save yourself some money by doing that most like almost all the time about the only time you wouldn't is if one of the people hadn't lost it one spouse had a lost you I had a game then you'd want to file a joint return. And that 95% of the time you better to do it that way 15 minutes before one another listen to err is on the line I go ahead please. 9 years and every employer that he has had has required him to maintain a home office for business records receiving phone calls files and storage of sample, and he lost his job in September and I was wondering whether we would be entitled to take the home office deduction for the month of September October November and December because of course he's planted he is looking for another position in that field and it would be impractical for us to sell the home and then have to purchase another one when he gets another position. I think as long as that room isn't used for any other purpose and still you maintain the way it was before I don't see why not cuz you are next to questions for a parent and I do make child support payments on a monthly basis. How can I determine whether or not I can take my child? There's a great difference is between state and federal law on determining the pendency is relative rules in there is a lot of a few other things Minnesota law is very basic whoever provides more than 50% of the support claims that the person has a dependent that is all there is to it if you can show that you claim you provide 51% you take that personal dependent credit if your spouse does then she would take it. Is there some schedule that the state uses to determine we actually try to never want to have them anymore forms. I absolutely have to so no, there isn't time. No schedule just didn't know how piece of paper and makeup on on your own and keep it in your records, of course, but now there's no schedule because I will probably be filing an amended return for 1981 and trying to income average. previous pot for 5 years upon a time. I filed a married joint return in 1981. I filed as a single What problems will I encounter? I really couldn't tell you because Minnesota doesn't have income averaging and that's probably the problems would have it with the Internal Revenue Service and I would again suggest you called it local office. 12 1/2 minutes before one day of summer is here and answering questions about the Minnesota income tax. What's your question, please? On my way. That's the only file my own gas and electric. Do I file that or not? Well, the fact that the fact that you pay your own gas electric, we have nothing to do whether you file a property tax refund or not. The only qualifications that you have to meet to file that is number one to be a Minnesota resident, which is I know what you are and number two is pay the rent yourself and live in property upon which real estate taxes are assessed. Now that's a change from prior years were people who lived in subsidized housing in nursing homes on which real estate taxes were in a says could claim it. They can't do it anymore return and that's all that's right. Yes. Everybody's entitled only one ranked Reddit. All right, we shall move on to another listener with a question about the Minnesota income tax. If I go ahead please dance for adults are people placing are owned by the county county sets the rates. What is the rule in Minnesota and claiming the reimbursement the county pays us for his income or not a big controversy right now. It's being determined on the federal level as to whether payments to foster parents or not or part of the payments are going to be taxable income. They haven't as far as I know made any decision interpretation that hasn't been resolved in the talent has a really going to back off and giving you an answer. I would check with you again with your local and obviously the Internal Revenue Service and see what they advise people to do in these things. We follow the ruling to see the reason I'm kind of backing off on. This is it's very touchy right now and they haven't really made any decisions and I would rather not to know and it is representing the department get too embroiled in something that's been doing on a federal level Nationwide right now. Okay, so then there really is no help for us. We're just a number for the year or two until it until it's resolved. Yeah. Okay. Thank you 10 minutes before 1 and another listing his question. Go ahead please it has been my understanding that interest on treasury bills is exempt from State text. So are you subtracted on form and one from your adjusted gross income? That is correct. Then they're still not taxable Line 6. Well according to the portion of it will be taxed after all. Get that impression after they do this. What's what is happening here is that the treasury bill interest is taxable on your federal return and federal taxes are deductible on the Minnesota return. Well, if Minnesota doesn't tax the income, it isn't going to allow us a deduction the tax that you paid on that income. See you've already the income is not taxable so that the expense related or the tax related to that income is not going to be deductible have to take that interest in subtracted from your only if I would say 10% of your income Minnesota didn't tax than 10% of your federal tax. Minnesota would not allow us a deduction that does not allow right just a portion. Minnesota tax. What is it? Is it just that you're not being allowed to deduct the the tax on the income Minnesota doesn't tax? Okay. Let's see if we can settle another listings question. Go ahead, please. hang out later or So you haven't received when I die. Call our order for form order number we should get is 297-3737 and order one available at the banks and post offices are the banks and post offices. I've had sometimes have scanty supplies you could try there. But if you can't get it there give the number of call Laura Lau when I check Friday. There's supposed to be right up to date on feeling forms. Now they were they were behind for a while, but they're supposed to be right up to date now credit. The record is the equivalent of the property tax refund for homeowners. It just uses 23% even rent instead of property taxes in determining the amount of your refund. Okay, thanks. You're welcome and a couple of telephone numbers during the hour Dave. Maybe maybe you should tell people what number they can call during the week if they have questions about their Minnesota income tax. If I if you have questions they like we've been answering today call +29-637-818-2430. I'd like to advise people as to the best times to call this time of year. As we were saying it's at the top that they is pretty busy. I would advise you to call either like real early in the morning between 8 and 9 or later in the week Mondays and Tuesdays are very our busiest days in Wednesday, Thursday and Friday at slows down. And it's available from 8 until when 8 till 4:30 at night Monday through Friday. Alright 6 minutes before the hour. We've got time to take some more calls. Go ahead. Please your next I guess. We are on Social Security and the nursing home and do I deduct that amount what I paid to the nursing home from the amount that I put on the circuit breaker at the nursing home care know you wouldn't take the whole thing. This is this is for the property tax refund, right if he's currently in the nursing home. Then the only income you would have to show us your own. I do get there's a certain amount in the bank each month left from his if it's his income, even though you know you the custodial or caretaker of them, you wouldn't show it you would show only your income Justin I can come I can make a significant difference in the money refund. If you do, you know, don't show his if he's permanently or in front of a resident in the nursing home then your household as far as this law is concerned as you show only your Social Security only your interest income and not his Well, then how does he go about that people file online if the nursing home has pays real estate taxes are as a payment in lieu of it it file his own using the amount that you paid the nursing home the nursing home for probably help you on that because I've been doing this now for 12-14 years. Okay 5 minutes before 1 to take another bus near go ahead please your next. Hi, go ahead this morning quite short time and I haven't earned enough to have to pay taxes. However, I do have some income $3,700 and I called your office and they tell me that well, I'm quite right I wouldn't have to file because the limit for married individuals is 4100. I heard a familiar with that. Yes, I am. There was another reason you may want to file as if where you work that they had withholding. You know, they took $130 that has been without. However, we have a fairly complicated tax picture and it cost me more than that. Probably to have my taxes done for another state. I already paying taxes in two states because of a corporation my wife participates in in Illinois, and I'm from Wisconsin and I'll have to pay taxes there. I'm wondering to questions I guess if I don't file and I think it's quite look into the city with Justified. That I'm not finally I I only have the $3,700 of income in Minnesota have only I'm only a part-year resident and I have no other income with the possible exception of some $20 in an income interest, which is come during the time. I've lived here you have some advice for the shopping. Where is there is a proposed law change that if people don't file returns required to that there could be $100 fine anyways, but he is not required to I don't really think if it's going to be all that complicated is he thinks it is? I would suggest reading for the instructions and giving it a shot. It's a hundred twenty bucks sure about 2 minutes before 1. Let's try another call real fast and very quick question a quick answer. Go ahead, please I'm at 87th a retired Widow. I have a paid Federal on certificates. I have no property do I declare to the state on the certificate? Also, you're talkin what kind of certificates from the federal government how much interest I have got right here, but it's it's a couple thousand know you don't mean to find the requirements are not required to file a return. I just want to do I have to make any decoration to this date at all. No, not outside of Mount you don't you don't need to find the requirements so you don't have to file a return because I didn't know what to do with it. Returns. Well, I think we have run out of time. I don't have time for the phone call, but I want to thank you Dave summary for coming in and pleasure visiting with the with our listening to so why don't you before you leave pass along those telephone numbers again? The one for people who need to get forms, and then the one for people who want some advice the one for people to get forms. He is again members of 24-hour seven-day-a-week numbers to 97373 7 day. It's real busy during the day. So try on the weekends or at night for just general tax advice, or where is my refund later on if it's been least 8 weeks since you filed in call to 96378 1 The federal number if it's Federal question, I'll give you two one might as well to 91142 to. All right, thank you very much. You think I'm thanks to all of you who called Emily hopefully help to settle a few problems this noon.