2024 Tax Law Changes

The 2024 resulted in several updates to Minnesota's tax code. Major changes are summarized below.

Individuals

Child Tax Credit — Advance Payments in 2025 and Later

Starting in tax year 2025, families who qualify for a 2024 Minnesota Child Tax Credit can choose to receive an advance payment of their 2025 credit. You must file a 2024 Minnesota Individual Income Tax return to determine the amount of the credit and choose to receive the advance payment. (See Minnesota Laws 2024, Chapter 127, article 68.)

Qualifying filers will also be able to choose advance payments in following years. For program details, go to Child Tax Credit.

Individual Income Tax — Standard Deduction Corrected for 2023

Minnesota laws were updated to adjust standard deduction amounts for Individual Income Tax for tax year 2023.  Taxpayers who had already filed Individual Income Tax returns for tax year 2023 (Form M1) do not need to take any action as a result of this change. Our forms already used the correct amounts for 2023.

This update ensures taxpayers received standard deductions that correctly address the inflation that has occurred since 2019. It adjusts the standard deduction amount for 2023 to $27,650 for married joint or surviving spouse filers, $20,800 for head of household filers, and $13,825 for all other filers. (See Minnesota Laws, Chapter 76, HF 2757.)

Businesses

Corporate Franchise Tax — Net Operating Loss Limit

A tax law update enacted April 8, 2024, retroactively changed the effective date for the 70% Net Operating Loss deduction limitation. Companies that filed their 2023 Corporate Franchise Tax Return before this law change may need to file an amended return to claim the additional NOL deduction. Visit Net Operating Losses for Businesses for more information. 

Moist Snuff Tobacco Tax

Beginning July 1, 2024, the definition of "moist snuff" also includes any similar tobacco-free products that contain nicotine. These products are subject to Minnesota Tobacco Tax in the same way as moist snuff products that contain tobacco. For more information, visit Tobacco Tax Requirements.