Contributed by KeriC, TaxPro Agent, FreeTaxUSA
You may itemize your deductions on your Minnesota return even if you use the Standard Deduction on your federal return. You will need to make sure you enter your itemized deductions that are allowable on your federal return in the Deductions/Credits portion of the software so that they will carry over to your state return.
Unlike the federal income tax return, an unreimbursed business expense can be from any profession for Minnesota purposes.
Regarding unreimbursed employee expenses on your Minnesota return, you cannot deduct expenses for travel (including meals unless you used the standard meal allowance), gifts, or use of a car or other listed property unless you keep records to prove the time, place, business purpose, business relationship (for gifts), and amounts of these expenses. Generally, you must also have receipts for all lodging expenses regardless of the amount.
The software will calculate the deduction on Schedule M1UE, and it is then reported on Form M1SA as part of MN itemized deductions. The software will gather the information required and will fill out the proper forms for you.
For additional information see Form M1-UE form and instructions.
