Commissioner of Revenue v. Richardson

TODD, Justice.

These consolidated appeals challenge the validity of the limitation of a deduction for contributions to a self-employment retirement plan in the amount of $2,500 for the tax year 1974. Generally, Minnesota defines adjusted gross income to be federal adjusted gross income. Federal legislation in 1974 retroactively raised the amount of deductible contribution to $7,500. This change was not adopted by the Minnesota Legislature until 1975. The Tax Court found that the 1974 Minnesota statutory definition controlled and that the appropriate state deduction was $2,500. We affirm.

The…