Our great State of Minnesota has taken some initiatives to make MN a more tax-friendly place to live. New in 2017.
- Subtraction of up to $4,500 for certain social security benefits.
- Child or dependent care credit increased to match the federal levels.
- Credit for student loan payments and exclusion of income from discharge of debt on
- Credit or subtraction for 529 college plans up to $1,500 or $3,000 for married filing jointly.
- Subtraction for earnings of first time homebuyer accounts.
*Details apply to each of the above and phase-outs may apply to certain individuals.
Estate Tax Initiatives:
- The individual exemption amount from MN estate taxes has been increased to $3 million by the year 2020. The amount increases each year until capped at $3 million. For decedents passing in 2017, the exemption is retroactively increased from $1.8 million to $2.1 million.
While somethings remain to be changed in the law to make Minnesota more competitive with its rival states, these are positive steps.