In last year’s session, a number of provisions of the American Taxpayer Relief Act of 2012 were not adopted by the state as a means of increasing Minnesota’s tax revenue. It is anticipated that during the 2014 session, the legislature will conform Minnesota income tax law to the changes made to the Internal Revenue Code through January 3, 2013. Conforming Minnesota and federal tax laws would mean eliminating the so-called “marriage penalty,” increasing the working family credit, allowing indebtedness to be discharged with limited or no tax consequences on the foreclosure or short sale of a principal residence, and restoring the tax exemption for adoption benefits, transit benefits and educational assistance provided by employers. The changes to Minnesota law are to be effective retroactively to January 3, 2013. In other words, these changes will provide tax relief to the so-called middle class for the 2013 tax year.