Minnesota Statutes Various State Taxes and Programs (Ch. 289A-295) § 290.0122. Itemized deductions

Subd. 2. Deductions limited; inflation adjustment. (a) The itemized deductions of a taxpayer with adjusted gross income over $220,650 are reduced by the lesser of:

(b) Notwithstanding paragraph (a), for a taxpayer with adjusted gross income over $1,000,000, a taxpayer's itemized deductions are reduced by 80 percent.

(c) For a married individual filing a separate return, the reduction under paragraph (a) must be calculated using one-half of the adjusted gross income amounts specified in that paragraph.

(d) For the purposes of this subdivision, “itemized deductions” means the itemized deductions otherwise allowable to the taxpayer under subdivision 1, except itemized deductions excludes:

(e) For taxable years beginning after December 31, 2023, the commissioner must adjust for inflation the adjusted gross income amounts under paragraphs (a) and (b) as provided insection 270C.22. The statutory year is taxable year 2023. The amounts as adjusted must be rounded down to the nearest $50 amount. The threshold amount for married individuals filing separate returns must be one-half of the adjusted amount for married individuals filing joint returns.

Subd. 3.Taxes paid. (a) A taxpayer is allowed a deduction for taxes paid. The deduction equals the sum of the following amounts for the taxable year:

(b) For purposes of this subdivision, the following terms have the meanings given them:

Subd. 4.Charitable contributions. (a) A taxpayer is allowed a deduction for charitable contributions. The deduction equals the amount of the charitable contribution deduction allowable to the taxpayer undersection 170 of the Internal Revenue Code, including the denial of the deduction under section 408(d)(8), except that the provisions ofsection 170(b)(1)(G)apply regardless of the taxable year.

(b) For taxable years beginning after December 31, 2017, the determination of carryover amounts must be made by applying the rules undersection 170 of the Internal Revenue Codebased on the charitable contribution deductions claimed and allowable under this section.

(1) qualified residence interest excludes home equity interest;

(2) acquisition indebtedness must not exceed $750,000, or $375,000 for a married separate return, for indebtedness incurred on or after December 16, 2017; and

(3) mortgage insurance premiums treated as interest undersection 163(h)(3)(E)are not interest for the purposes of this subdivision.

(1) losses described insection 165(c)(3) of the Internal Revenue Code, including the provisions ofsection 165(h) of the Internal Revenue Code, but disregarding paragraph (h)(5); and

(2) losses described insection 165(d) of the Internal Revenue Code.

(1) impairment-related work expenses allowed undersection 67(d) of the Internal Revenue Code;

(2) the deduction for estate tax undersection 691(c) of the Internal Revenue Code;

(3) any deduction allowable in connection with personal property used in a short sale as described undersection 67(b)(8) of the Internal Revenue Code;

(4) the deduction undersection 1341 of the Internal Revenue Code;

(5) the deduction undersection 72(b)(3) of the Internal Revenue Code;

(6) the deduction undersection 171 of the Internal Revenue Code; and

(7) the deduction undersection 216 of the Internal Revenue Code.