MINNEAPOLIS - When you file your taxes this spring, it will be the first year you can take advantage of an increased standard deduction, which nearly doubled to $12,000 for single filers and $24,000 for joint filers.
But last spring Gov. Mark Dayton vetoed a bill that would have aligned Minnesota's tax code with the new federal code.
Tax expert Steven Warren, certified public accountant with Schechter Dokken Kanter in Minneapolis says, unexpectedly taxpayers will have the option to take the standard deduction for federal income tax, while continuing to itemize Minnesota state income tax. This is due to the state not raising the standard deduction amount.
"But now, maybe people weren't tracking, or keeping receipts for their charitable contributions and medical expenses," Steven Warren said. "They're going to have a nice headache going back and figuring all of that out."
Warren said it will cost many people a lot of money because Dayton vetoed the tax conformity bill last year because he said it gave too many tax breaks to big businesses.
Representative Paul Marquart says it would be too difficult for the Department of Revenue if the legislature tried to push something through in January.