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Level 3
February 26, 2021
Question

Is Minnesota IRA deduction addback correct?

  • February 26, 2021
  • 2 replies
  • 26 views

For a single taxpayer NOT covered by a retirement plan, MN should NOT compute an addback if AGI is greater than $75,000.  Yet that is what Proseries is doing.  Anyone else experiencing this?

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2 replies

February 26, 2021

I don't think I've come across that one yet, so I don't know what it is doing. 

But have you verified there is no indication of an employer retirement plan?  Double check any W-2s, and double check the employer retirement worksheet if the client is self employed.

Level 3
March 1, 2021

Yes, that was the first thing I checked.  But regardless of whether the retirement plan box is checked (and there is no other Sch. C business) ProSeries is computing and addback on the MN return based on AGI.  The correct treatment should be there is only an addback if taxpayer or spouse are covered by a retirement plan!  Please correct this error!