Starting with taxable years beginning after December 31, 2018, MN uses federal AGI, with some modifications, as the starting point. While MN follows the federal rules for NOLs, it  does not recognize the CARES Act provisions with respect to NOLs.

Taxpayers amending their federal return to carry back a NOL – either on Form 1040X or Form 1045 – need to use MN Form M1X to amend their MN return. For your client who is a nonresident of MN, you will need to recompute Schedule M1NR with Form M1X for the loss year.

For more info, please copy and paste the following link in your browser:

https://www.revenue.state.mn.us/net-operating-losses-0