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Minnesota Free Printable Provider, Hospital, and Surgical Center Taxes Instructions for 2021 Minnesota Provider, Hospital and Surgical Center Tax Return

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Provider, Hospital and Surgical Center Tax Return
Provider, Hospital, and Surgical Center Taxes Instructions

MinnesotaCare Tax 2020 Provider, Hospital, and Surgical Center Taxes Information and instructions for filing your MinnesotaCare tax return (Minnesota Statutes, Chapter 295) Your 2020 Annual Return is Due March 15, 2021 Information and Assistance File your return electronically starting January 22, 2021. Go to our website and log in to e-Services to file or pay. Website/e-Services www.revenue.state.mn.us Email [email protected] Phone 651-282-5533 (Weekdays, 8 a.m. to 4:30 p.m.) Fax 651-556-5233 Business Registration Email: [email protected] Phone: 651-282-5225 or 1-800-657-3605 Contents What’s New . . . . . . . . . . . . . . . . . . . . . . 1 Registering for a Minnesota Tax ID Number . . . . . . . . . . . . . . . . . . . . . . . . . 2 General Information . . . . . . . . . . . . . 2-4 Electronic Filing and Payment Requirements Filing Due Date Estimated Tax Payments Reporting Business Changes Recordkeeping Statute of Limitations Payment Options Who Must File . . . . . . . . . . . . . . . . . 4-6 How to File Your Annual Return . . 6-13 How to Amend Your Return . . . . . 13-14 Managing Your Account Profile in e-Services . . . . . . . . . . . . . . . . . . . . 14 Annual Tax Return Worksheet . . . . . . 15 This information is available in alternate formats. What’s New COVID-19 Relief Payments Health care providers, hospitals, and surgical centers that received COVID-19 relief payments during the 2020 tax year only need to report certain relief payments on the following lines of their 2020 MinnesotaCare tax return. Gross Receipts Include in Gross Receipts any additional reimbursements, such as add-ons or advance payments, you received due to the COVID-19 pandemic from these sources: • • • • • Medicare or Medicare managed-care plans for Medicare-covered services Federal Employees Health Benefits Act (FEHBA) TRICARE Medical Assistance (MA) or MinnesotaCare Health insurers or other third-party payers of health care services Do not report other COVID-19 government relief payments on your 2020 return. You must keep documentation, however, to support all COVID-19 relief payments you receive. Medicare and FEHBA/TRICARE Exemptions Include any additional reimbursements from Medicare, FEHBA, or TRICARE that you reported in Gross Receipts on the appropriate exemption line. See the Line Instructions starting on Page 7 for more information on reporting the relief payments on your MinnesotaCare tax return. Tax Rate Change Reminder The tax rate is 1.8% for 2020. The 1.8% rate applies to taxable revenue you received starting January 1, 2020. e-Services Upgrade Our e-Services system has a new look and feel! The new design is more intuitive and user friendly. For help, search e-Services Help on our website. Sign Up to Receive Email Updates Stay informed about MinnesotaCare taxes! Sign up to receive email updates about: • filing and payment due date reminders • new or updated publications • educational tax seminars • tax law changes To sign up, go to our website at www.revenue.state.mn.us and subscribe for email updates. Enter your email address and select MinnesotaCare Tax Updates from the list. 1 Registering for a Minnesota Tax ID Number Before you can file a MinnesotaCare tax return and/or make estimated tax payments, you must have a Minnesota Tax ID Number. This is a seven-digit number assigned to you when you register with the Minnesota Department of Revenue. If you do not have a Minnesota ID number, you must apply for one. You can apply on our website at www.revenue.state.mn.us or by contacting Business Registration (see Information and Assistance on Page 1). If your business currently has a Minnesota ID number for other Minnesota taxes, you can add a MinnesotaCare tax account to your number. To add an account, go to our website and log in to e-Services or contact Business Registration. General Information Electronic Filing and Payment Requirements Annual Return You must file your annual return electronically using our online e-Services system or by phone (see Page 6). Payments You are required to pay electronically if your tax liability was more than $10,000 for any one Minnesota business tax during the previous fiscal year (July 1 - June 30). If you are required to pay any Minnesota business tax electronically for one year, you must pay all Minnesota business taxes electronically for all future years. We will send you a notice the first year you are required to pay electronically. A 5% payment method penalty will be assessed on any non-electronic payments if you fail to pay electronically when required. Filing Due Date Annual Return The regular due date to file your annual MinnesotaCare tax return and pay any additional tax due for the previous calendar year is March 15. The return must be filed even if there is no additional tax due. If March 15 falls on a weekend or holiday, returns filed on the next business day are considered timely. Extension of Time to File If you cannot file your return by the regular due date, you may request a 60-day filing extension. To request an extension for your 2020 return, call 651-282-5533 no later than March 15, 2021. A filing extension does not extend the time you have to pay your tax. You must pay any tax you owe by the regular due date or you will be assessed penalties and interest. For 2020 returns, the regular due date is March 15, 2021. To pay electronically, go to our website and log in to e-Services. Estimated Tax Payments You are required to make estimated tax payments for the year if your total annual MinnesotaCare tax was more than $500 for the previous year and will be more than $500 for the current year. If you are not required to make estimated tax payments for the year, you may pay your tax when you file your annual return. Due Dates Estimated tax payments are due quarterly for health care providers and monthly for hospitals and surgical centers. • Health Care Providers: Your quarterly estimated tax payments are due by the 15th day of April, July, and October of the current year and January 15 of the following year. • Hospitals and Surgical Centers: Your monthly estimated tax payments are due by the 15th day of each month. The first payment for the year is due February 15 and the last payment is due January 15 of the following year. If a due date falls on a weekend or holiday, payments electronically made or postmarked the next business day are considered timely. Each estimated tax payment must be at least the lesser of either: • 90% of one-fourth (or one-twelfth, if you are a hospital or surgical center) of your actual tax for the current year • one-fourth (or one-twelfth, if you are a hospital or surgical center) of your actual tax for the previous year To determine your estimated tax payments, see the MinnesotaCare Estimated Tax Instructions available on our website. Additional Charge for Underpaid Estimated Tax If any payment is paid late or is less than the required amount, an additional charge will be assessed. Our e-Services system will calculate any additional charge when you file your annual return. 2 General Information (continued) Reporting Business Changes Be sure to update your business information if you do any of the following: • change the name, address, owner/officers, or ownership of your business • make any other changes (such as email address, phone number, or contact person) • need to add or close a tax account • close your business • are no longer required to file and pay MinnesotaCare tax To update business information, go to our website and log in to e-Services. For additional information, see Managing Your Account Profile in e-Services on Page 14. Recordkeeping Keep all internal accounting records and external third-party documentation that support the amounts reported on your MinnesotaCare tax return. This includes any paper records and any records you receive or store electronically. Some examples of paper and electronic records include: • • • • • • • • • • • • • bank statements collection agency statements credit card processing vendor statements patient financing company statements explanations of benefits (EOBs) from Medicare, FEHBA, and TRICARE payers remittances from other government agencies 1099 tax statements from payers detailed records of nonpatient income documentation for all COVID-19 relief payments received audited and compiled financial statements legend drug purchase invoices all other summary and detail reports, schedules, ledgers, and journals computer system or software back-ups If you are audited, you will be asked to provide between 4 and 6 years of records. All documentation must be made available for the department to review. Exemptions may be denied if your documentation is incomplete. Statute of Limitations The department may audit your return within 31/2 years from the due date of the return or the date you filed the return, whichever is later. If there is an error in the amount of tax you reported, and the difference between the original amount and the correct amount is 25% or more, we have 61/2 years to audit the return. There is no time limit if we find you have filed a false or fraudulent return, or if you have not filed a return. Payment Options e-Services You can make payments using our online e-Services system or by phone. If you pay through e-Services, you will be able to view a record of your payments online once they are processed. • To pay online, go to our website at www.revenue.state.mn.us and log in to e‑Services. • To pay by phone, call 1-800-570-3329 to use our automated phone system. You will need your bank’s routing number and your account number. To be timely, you must submit your payment and receive a confirmation number on or before the payment due date. When paying electronically, you may not use an account associated with a foreign bank. Credit or Debit Card For a fee, you may charge your payments to your Visa, MasterCard, American Express, or Discover credit or debit card. To do so, have your card ready and go to www.paystatetax.com/mn or call 1-855-947-2966. ACH Credit ACH credit payments are initiated by you through your bank. You authorize your bank to transfer funds to the state’s bank account. The bank must use ACH file formats, which are available on our website. Your bank may charge you a fee for these payments. Bank Wire You can authorize a direct transfer from your bank account to the department. For information on how to make a bank wire transfer, call us at 651-556-3003 or 1-800-657-3909. 3 General Information (continued) Revenue Notices Revenue Notices are policy statements that provide interpretation, details, or additional information about Minnesota tax laws or rules. The following are related to MinnesotaCare taxes. Go to our website at www.revenue.state.mn.us to download copies. 17-11 — Fair Market Value of Patient Services Furnished at a Reduced Price or No Charge 07-06 — Patient Services – Massage Therapy 06-13 — Patient Services – Community Support and Family Community Support 06-12 — Patient Services – Cosmetology Services 06-07 — Exemptions and Credits – Research 01-09 — Business Transactions in Minnesota 00-07 — Hospital Gross Revenues 99-13 — Examinations for Utilization Reviews, Insurance, Litigation and Employment 98-20 — Receipts from the Sale of Chiropractic Medical Supplies, Appliances and Equipment 98-10 — Legend Gas Distributors 98-05 — Sale of Drugs by Hospitals and Health Care Providers 97-11 — Dietetic and Nutrition Care Services 97-10 — Social Work 94-20 — Industrial/Organizational Psychologists 94-18 — Employee Assistance Programs 94-14 — Health Care Providers/Patient Services – Who/What is Taxable 94-12 — Who is the Taxpayer? 94-03 — Patient Services 93-18 — Government Payments 93-15 — Charitable Donations 93-13 — Health Care Providers Check Payments If you are not required to pay electronically and you choose to pay by check, you must mail a personalized payment voucher with your check to help ensure the payment is credited correctly. Go to our website at www.revenue.state.mn.us and select Make a Payment. Look for Check or Money Order to create a voucher. Print and mail the voucher with a check made payable to Minnesota Department of Revenue. Your check authorizes us to make a one-time electronic fund transfer from your account. You may not receive your canceled check back. Who Must File Health care providers, hospitals, and surgical centers are required to file an annual MinnesotaCare tax return and pay tax on amounts received for providing health care services to patients. Who Must File Health Care Providers You are required to file a MinnesotaCare Provider Tax Return if you are any of the following: • a self-employed health care provider who is regulated or required to be regulated by the state of Minnesota and provides medical, surgical, optical, visual, dental, hearing, nursing services, drugs, laboratory, diagnostic or therapeutic goods and/or services directly to a patient or consumer (see list of common occupations on the next page) • an employer of a health care provider who is regulated or required to be regulated by the state of Minnesota. Employers also include professional associations and staff model health plan companies • eligible for reimbursement from the Medical Assistance (MA) program for the health care goods or services you provide • a seller who sells or repairs hearing aids and related equipment (out-of-state sellers see Remote Sellers on Page 5) • a seller who sells or repairs prescription eyewear (out-of-state sellers see Remote Sellers on Page 5) • a licensed ambulance service (nonvolunteer) • a person who provides patient services and employs or contracts with a health care provider to perform, supervise, otherwise oversee, or consult with about patient services 4 Who Must File (continued) Remote Sellers Out-of-state businesses that sell hearing aids and related equipment or prescription eyewear to consumers in Minnesota without having physical presence (nexus) in the state are remote sellers. Remote sellers are required to file a Provider Tax Return if they meet one or both of these thresholds during a calendar year: • 200 or more sales, deliveries, or distributions of the above items into Minnesota • More than $100,000 in gross revenue from sales, deliveries, or distributions of the above items into Minnesota For more information on physical presence, go to our website at www.revenue.state.mn.us and enter MinnesotaCare Taxable Presence in the Search box. Small Seller Exception for Remote Sellers. Remote sellers that are below both thresholds during a calendar year qualify for the Small Seller Exception and are not subject to tax for that year. If you qualify for the Small Seller Exception for 2020 and are not registered for Provider Tax, you do not need to register or file a return now. If for any calendar year you no longer qualify for the Small Seller Exception, you must register, file a return, and pay tax for that year. If you qualify for the Small Seller Exception for 2020 and are already registered, see Claiming the Small Seller Exception for Remote Sellers on Page 7. For more information on requirements for remote sellers and the Small Seller Exception, go to our website at www.revenue.state.mn.us and enter MinnesotaCare Remote Sellers in the Search box. Health Care Occupations Regulated or Required to be Regulated by Minnesota (not all inclusive) Examples include, but are not limited to: • acupuncture practitioner • alcohol and drug counselor • ambulance service (licensed nonvolunteer) • audiologist • chiropractor • dental assistant • dental hygienist • dentist • dietitian • emergency medical technician • hearing instrument dispenser • marriage and family therapist (licensed or licensed associate) • medical doctor/physician • midwife, traditional • naturopathic doctor • nurse* • nursing assistant • nutritionist • occupational therapy practitioner • optometrist • osteopath • paramedic • physical therapy practitioner • physician assistant • podiatrist • professional counselor • psychologist • respiratory care practitioner • social worker** • speech language pathologist • staff model health plan company *Nurse includes advanced practice registered, practical, public health, or registered. **Social worker includes graduate, independent, or independent clinical. See Revenue Notice 97-10 for information on social worker services that are taxable. Hospitals and Surgical Centers You are required to file a MinnesotaCare Hospital or Surgical Center Tax Return if you are a licensed hospital or an outpatient surgical center. Who Is Not Required to File The following are not considered health care providers under MinnesotaCare tax law and are not required to file a MinnesotaCare Provider, Hospital, or Surgical Center Tax Return: • adult foster homes and day care centers • assisted living facilities • board and lodging establishments that provide only custodial services and are registered to provide supportive and health supervision services • boarding care homes • bus and taxicab transportation services, or any other providers of transportation services other than licensed ambulance services • community mental health centers • community residential mental health facilities 5 Who Must File (continued) • congregate housing programs • day training and habilitation services for adults with developmental disabilities • educational institutions that employ providers solely for student health care services, provided that the students do not pay additional fees for services and do not pay for extended health care coverage • employers who employ health care providers solely to provide health care services to their employees • agencies certified by Medicare as home health agencies • hospice care facilities • housing with services establishments • licensed home care providers that exclusively provide home care services under Minnesota Statutes 144A • licensed residential treatment programs for children with severe emotional disturbance • medical supply distributors, except distributors that sell or repair hearing aids and prescription eyewear or health care providers that sell medical supplies or equipment to their patients • nursing homes • pharmacies, except pharmacies that sell prescription eyewear or hearing aids. (Note: Pharmacies may be subject to the MinnesotaCare Legend Drug Use Tax. See separate instructions available on our website.) • supervised living facilities for persons with developmental disabilities • qualified providers and supervisors of personal care services • providers of home care nursing services ordered by a physician • volunteer ambulance services You are also not required to file a return if ALL your receipts are from the following: • • • • • another health care provider, hospital, or surgical center who is subject to the tax sales of hearing aids and related equipment delivered outside of Minnesota sales of prescription eyewear delivered outside of Minnesota services provided outside of Minnesota services that are not considered patient services under MinnesotaCare tax law (see instructions for Gross Receipts, What Not to Include, on Page 9) • any source of funds that is exempt from MinnesotaCare taxes (see instructions for Exemptions starting on Page 9) If you are not required to file, you do not need to register for MinnesotaCare taxes. If you are already registered and are no longer required to file a return, you must notify us. If you do not, you may be assessed penalties for not filing a return. You can update your business information in e-Services or by contacting us. How to File Your Annual Return Your 2020 MinnesotaCare tax return is due March 15, 2021. File your return using our e-Services system starting January 22, 2021. Information You Need to File Your Return You must file your MinnesotaCare tax return electronically using our online e-Services system or by phone. Before you can file your return, you will need the following: • your username (or Minnesota Tax ID Number, if filing by phone) and password • dates and amounts of any MinnesotaCare estimated tax payments you made for the year • total gross receipts received during the year • total amount for each exemption you are claiming • if you are making a payment with your return, your bank’s nine-digit routing number and your bank account number See the Line Instructions on the next page for help calculating these amounts. You must have a MinnesotaCare Provider, Hospital, or Surgical Center Tax account to file a return. To add an account, log in to e-Services or contact Business Registration (see Page 2). If you have an account, but the period you are filing is not listed in e-Services, please call the MinnesotaCare Taxes Unit at 651-282-5533 so we can add it to your account. To File Online Go to our website at www.revenue.state.mn.us and log in to e-Services. 6 How to File Your Annual Return (continued) You will need internet access with a browser that supports 128-bit encryption, such as Internet Explorer 8.0 to 11.0, Firefox 3.0 or higher, Google Chrome, or Safari 5.X. To File by Phone If you do not have internet access, call 1-800-570-3329 to file using our automated phone system. Follow the prompts for a business to file a MinnesotaCare Provider Tax, Hospital Tax, or Surgical Center Tax Return. After each entry, the system will verify the amount you entered. You will be able to make corrections before you continue to the next step. You will receive a confirmation number and the date and time you successfully filed your return. If you hang up before you receive a confirmation number, the information you entered will not be saved and your return will not be filed. Line Instructions A worksheet is available on the last page of these instructions to help prepare your return information. You will need this information when you electronically file your return. Gross Receipts Report the gross receipts, including MinnesotaCare tax expense charges, you received during the year for patient services you provided in Minnesota. Include both taxable and exempt receipts. Any exempt receipts will be subtracted from gross receipts on the exemption lines of your return. If you provided services outside of Minnesota, see Revenue Notice 01-09, which is available on our website. What to Include Gross receipts include amounts you received from: • patients or their insurers, including MinnesotaCare tax expense charges, finance charges, and fees for missed appointments • government agencies, including federal, state, and county programs, for health care services provided • health care plans of federal, state of Minnesota, and Minnesota local government employees • nursing home residents or their insurers • staff model health maintenance organizations, reported on Form 1099 • sponsors of health care research for services you provided as part of a formal program of health care research Gross receipts include amounts you received for: • legend and nonlegend drugs and gases included in health care services • medical supplies and equipment included in health care services, or sold to someone you provided health care services to • patients’ room and food • diagnostic, therapeutic, and laboratory services • outpatient services, including physical rehabilitation and counseling for mental health conditions • preventative and x-ray services • sales or repairs of prescription eyewear and hearing aids Claiming the Small Seller Exception for Remote Sellers Remote sellers that sell hearing aids and related equipment or prescription eyewear to consumers in Minnesota without having physical presence (nexus) in the state may qualify for the Small Seller Exception. To qualify for the Small Seller Exception, you must meet both of the following requirements for a calendar year: • Less than 200 sales, deliveries, or distributions of the above items into Minnesota • $100,000 or less in gross receipts from the sale, delivery, or distribution of the above items into Minnesota If you qualify for the Small Seller Exception for 2020 and are currently registered for Provider Tax, you must notify us by March 15, 2021, using our online e-Services system. Log in to e-Services and select Returns and Periods for your Provider Tax account. Then select File Return for the 2020 period. After you review any payments you made for the year, you will be asked if you qualify for the Small Seller Exception. If you qualify, you will need to enter the total number of sales you made into Minnesota for the year and the total gross receipts you received from sales into Minnesota for the year. Follow the remaining prompts in e-Services to submit a return reporting zero tax. This return serves as your Small Seller Exception notification. If you qualify for the Small Seller Exception but the screen to confirm the exception is not available on your annual return in e-Services, contact us at 651-282-5533 or [email protected] We will update your e-Services account to include the screen on your return. For more information on the Small Seller Exception for remote sellers, go to our website at www.revenue.state.mn.us and enter MinnesotaCare Remote Sellers in the Search box. 7 How to File Your Annual Return (continued) • ambulance services, except volunteer ambulance services • health and fitness classes prescribed as part of a course of treatment • services provided to other health care providers Gross receipts include amounts you received as: • performance bonuses and supplemental payments received from insurers • settlement adjustment payments from Medicare and other insurers • charitable donations used for health care services COVID-19 Relief Payments If you received COVID-19 relief payments during the 2020 tax year, you only need to report certain relief payments in gross receipts. Include in gross receipts any additional reimbursements, such as add-ons or advance payments, you received due to the COVID-19 pandemic from the following sources: • Medicare or Medicare managed-care plans for Medicare-covered services • Federal Employees Health Benefits Act (FEHBA) • TRICARE • Medical Assistance (MA) or MinnesotaCare • Health insurers or other third-party payers of health care services Additional reimbursements you include in gross receipts from Medicare, FEHBA, or TRICARE should also be included on the appropriate exemption lines of your return and will be subtracted from taxable gross receipts. Educational Institution Health Care Services If you are a health care service of a public or private educational institution, include only the following in gross receipts: • fees for services paid directly by patients or their insurers • fees for extended coverage Do not include in gross receipts amounts designated for student health care services that are paid from any of the following: • student activity fees • student health care service fees included in student activity fees • allocations from the institution’s budget for your health care service • donations or grants Collection and Other Fees When you use another business to process or collect payments for you, any fee or commission they retain before paying you is taxable. You must include it with the amount you received in gross receipts. Common entities that may retain a fee before remitting payment include: • billing services • collection agencies • credit card processing vendors • patient financing companies Any fees retained by these entities must be included in gross receipts. Free or Discounted Services When you receive goods or services (not money) in exchange for providing free or discounted patient services, the fair market value of the services you provide is taxable. Common examples include providing services to: • employees and their families as part of an employee’s compensation package • other professionals through professional discount agreements • other individuals when bartering or trading for goods or services Determining the taxable amount in these cases depends on how you are reimbursed for the service. For more information on how to calculate the taxable amount for free or discounted services, see MinnesotaCare Tax Fact Sheet 5, Free and Discounted Patient Services. Go to our website at www.revenue.state.mn.us and enter MinnesotaCare Fact Sheets in the Search box to download a copy. Note: If you provide discounted services to individuals who do not provide any goods or services in return, the taxable amount is the actual amount you receive. If the service is provided free of charge, there is no tax due on the service. 8 How to File Your Annual Return (continued) What Not to Include Do not include in gross receipts amounts received from providing: • hospice care services • home and community-based waivered services • targeted case management services • examinations for purposes of utilization reviews, insurance claims or eligibility, litigation, and employment, including reviewing medical records and providing expert witness testimony for these purposes • patient services outside of Minnesota • copies of records to patients and insurers • general education services to the public • exercise classes to the public • room and food to nonpatients • services under the following programs: — day treatment services (M.S. 245.462, subd. 8) — assertive community treatment (M.S. 256B.0622) — adult rehabilitative mental health services (M.S. 256B.0623) — adult crisis response services (M.S. 256B.0624) — children’s therapeutic services and supports (M.S. 256B.0943) — children’s mental health crisis response services (M.S. 256B.0944) Do not include in gross receipts amounts received from providing services to: • nursing homes • licensed community residential mental health facilities • licensed residential treatment programs for children with severe emotional disturbance • community mental health centers • assisted living programs and congregate housing programs • supervised living facilities for persons with developmental disabilities • housing with services establishments • board and lodging establishments that provide only custodial services and are registered to provide supportive and health supervision services • adult foster homes • day training and habilitation services for adults with developmental disabilities • boarding care homes • adult day care services • agencies certified by Medicare as home health agencies When calculating gross receipts, also do not include: • refunds to patients or their insurers • sales of medical supplies and equipment sold to someone you have not provided health care services to • receipts from gift shops, parking ramps, cafeterias, and rents • amounts received from retail sales of products subject to Sales Tax (such as vitamins, supplements, toothbrushes, pillows, etc.) Exemptions Amounts you report as exempt must be included in gross receipts. When reporting exemptions, do not claim the same amount on more than one exemption line. Medicare Of your total gross receipts, report the amount you received from: • Medicare for Medicare-covered services • Medicare managed-care plans for Medicare-covered services The exemption includes: • deductibles, coinsurance, and copayments required by Medicare for Medicare-covered services, whether paid by patients and/or supplemental insurance plans • additional reimbursements, such as add-ons or advance payments, you received due to the COVID-19 pandemic from Medicare or Medicare managed-care plans for Medicare-covered services 9 How to File Your Annual Return (continued) Medical Assistance Supplemental Payments Certain Medical Assistance supplemental payments are exempt from MinnesotaCare Provider and Hospital Taxes, effective July 1, 2016. By law, only a few providers and hospitals qualify to receive these payments. (See Minnesota Statutes 256B.196 and 256B.197.) The exemption includes Medical Assistance supplemental payments received for: • Inpatient Hospital Services • Outpatient Hospital Services • Physician and Other Practitioner Services • Ambulance Services • Enhanced Hospital Payment (EHP) Eligible recipients vary depending on the type of payment, but are currently limited to: • Hennepin County Medical Center • Regions Hospital • City of St. Paul • University of Minnesota • University of Minnesota Physicians • Government-Owned and Operated Ambulance Services. (Note: Only nonvolunteer ambulance services are subject to Provider Tax.) How to Claim the Exemption You must file your MinnesotaCare tax return electronically using our online e-Services system. If this is the first time you are claiming this exemption, contact us at 651-282-5533 or [email protected] before filing your annual return. We will update your e-Services account to include the exemption lines on your return. What to Include Of your total gross receipts, report the amount you received as Medical Assistance supplemental payments during the year. For EHP payments, enter the total amount received during the year, less any amounts recouped during the year by the Minnesota Department of Human Services through managed care organizations. If you did not receive an EHP payment, but an amount was recouped during the year from a previous year’s payment, enter the recouped amount as a negative number on the exemption line. For additional information on the Medical Assistance Supplemental Payments Exemption, go to our website at www.revenue.state. mn.us and enter Supplemental Payments in the Search box. • settlement adjustment payments from Medicare The exemption does not include payments from: • third-party insurers when Medicare is not the primary insurer • patients or their insurers for health care services not covered by Medicare For more information on Medicare-covered services and plans, go to www.medicare.gov. Other Government Agencies Of your total gross receipts, report the amount you received from government agencies in connection with a government program for health care services you provided. The exemption does not include amounts received from Medicare, Medical Assistance (MA), or MinnesotaCare. Also do not include COVID-19 relief payments you received in 2020. The exemption includes, but is not limited to, payments from the following government sources: • Chemical Dependency Fund • Federal Head Start programs • Federal, state, or local government agencies for services provided to prison inmates • Migrant Health Service Project • Minnesota Board of Medical Practice • Minnesota Department of Employment and Economic Development • Minnesota Department of Public Safety • Minnesota Department of Veterans Affairs (Note: Payments received from this state agency are exempt; however, payments received from the U.S. Department of Veterans Affairs are taxable.) • Minnesota State Services for the Blind • State of Minnesota for detoxification services 10 How to File Your Annual Return (continued) • • • • State of Minnesota for rehabilitation services U.S. Bureau of Prisons U.S. Indian Health Service U.S. Public Health Service The exemption also includes payments from the following entities or programs, if funded entirely by federal, state, or local government agencies: • adult detention centers • crime victims reparation programs • gambling treatment programs • home schools • juvenile detention centers The exemption does not include payments from: • CHAMP VA • Federal, state, or local government employee insurance plans (Note: If the employee is a federal employee and the patient services are paid by FEHBA or TRICARE, see the FEHBA and TRICARE information on Page 11.) • Medical Assistance (MA) • Minnesota Comprehensive Health Association (MCHA) • MinnesotaCare • Prepaid Medical Assistance Programs (PMAP) • U.S. Department of Veterans Affairs (Note: Payments received from this federal agency are taxable; however, payments received from the Minnesota Department of Veterans Affairs are exempt.) • Workers Compensation Federal Employees Health Benefits Act (FEHBA) and TRICARE Of your total gross receipts, report the amount you received from FEHBA and TRICARE. The exemption includes any additional reimbursements, such as add-ons or advance payments, you received due to the COVID-19 pandemic from FEHBA or TRICARE. Enrollee deductibles, coinsurance, and copayments are taxable. The exemption does not include payments from the following sources: • CHAMP VA • FEDVIP • Project Hero For more information on participating FEHBA and TRICARE insurance carriers, go to: • FEHBA’s website at www.opm.gov/healthcare-insurance • TRICARE’s website at www.tricare.mil Payments from Other Health Care Providers, Hospitals, and Surgical Centers Of your total gross receipts, report the amount you received from: • other health care providers, hospitals, and surgical centers responsible for paying MinnesotaCare tax on health care services you provided • other entities, including those not subject to tax, that were reimbursed for health care services you provided by any of the following: — Medicare, including Medicare deductibles, coinsurance, and/or copayments — Chemical Dependency Fund — Federal, state, or local government agencies in connection with a government program, not including Medical Assistance (MA) and MinnesotaCare — FEHBA or TRICARE, not including enrollee deductibles, coinsurance, and/or copayments Payments from Sponsors of Health Care Research Of your total gross receipts, report the amount you received from sponsors of health care research and other entities (such as medical device manufacturers) for providing patient services through a formal health care research program. Research must be conducted in conformity with federal regulations governing research on human subjects. The exemption does not include payments from patients or their insurers for services you provided as part of the research. 11 How to File Your Annual Return (continued) Charitable Donations or Home Health Care Services Charitable Donations. Of your total gross receipts, report the amount you received as charitable donations that were used for health care services not designated for a specific individual or group. Charitable donations that are designated for a specific individual or group are taxable. Private grants in the nature of a charitable donation qualify for this exemption. Government grants do not qualify for this exemption. However, grants from government agencies that are not funded by Medical Assistance may be exempt as a government payment (see Other Government Agencies on Page 10). Home Health Care Services. Home health care services are services provided in a patient’s residence by a licensed home health agency, personal care provider, or home care nursing service that is eligible to participate in the Medical Assistance program, or home care providers required to be licensed by the Minnesota Department of Health. Of your total gross receipts, report the amount you received from patients or their insurers for home health care services you provided in a patient’s residence. The exemption includes payments from the retail sale of health care supplies and equipment, including drugs, used as part of the licensed home health care services you provided in the patient’s residence. Legend Drugs Legend drugs are drugs or gases required by federal law to be sold or dispensed in a container labeled with one of the following statements: • “Caution: Federal law prohibits dispensing without prescription” • “Rx only” To claim the exemption, legend drugs or gases must be: • classified by the U.S. Food and Drug Administration (FDA) as a drug and not a device. Devices, equipment, and/or supplies are not legend drugs. • purchased from a wholesale drug distributor who is subject to MinnesotaCare Wholesale Drug Distributor Tax. To determine if a wholesaler is subject to tax, check your purchase invoice for a MinnesotaCare tax expense charge or contact the wholesaler for verification. Nutritional products, blood, and blood components are not considered legend drugs and cannot be used to claim the exemption. Blood derivatives, however, that are derived from blood, plasma, or serum through a chemical manufacturing process, are considered legend drugs. Calculating the Exemption. There are two methods you can use to calculate the exemption. If you cannot use Method 1, you must use Method 2. Method 1: You may claim the actual amount you paid for the legend drugs, less any reimbursements you received for the drugs that are exempt under MinnesotaCare tax law (such as drugs reimbursed by Medicare). These reimbursements are included in the other exemption amounts reported on your return. In order to use this method, you must be able to determine the portion of the amounts reported on other exemption lines that are for legend drug reimbursements, and have records verifying the actual drug costs and exempt reimbursement amounts. If you cannot determine the actual drug costs and exempt reimbursement amounts, you must use Method 2. Method 2: If you cannot determine the actual drug costs and exempt reimbursement amounts, you must use the calculation at the bottom of this page to determine your allowable exemption. A Legend Drug Exemption Calculator is available on our website that will make this Method 2 calculation for you. To access the calculator, go to our website at www. revenue.state.mn.us and enter Legend Drug Calculator in the Search box. Method 2: Legend Drug Exemption Calculation If you cannot determine the actual legend drug costs and exempt reimbursement amounts, you must use the calculation below to determine your allowable exemption. 1 Legend Drug Purchases. The total amount you paid during the year for legend drugs or gases . . . . . . . . . . . . . 2 Gross Receipts. The total gross receipts you received during the year (that you are reporting on your annual return) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Total Exemptions. The total of all other exemptions for the year (that you are reporting on your annual return) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Subtract Step 3 from Step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Divide Step 4 by Step 2 (should be preceded by a decimal point) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Allowable Legend Drug Exemption. Multiply Step 1 by Step 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enter the result from Step 6 on the Legend Drug Exemption line when you file your annual return. 12 How to File Your Annual Return (continued) Research Credit Health care providers and hospitals may be eligible for a credit against their MinnesotaCare tax liability if they used their health care receipts received during the year to fund qualifying health care research. To qualify, the research must be part of a formal research program conducted in conformity with federal regulations and subject to review. The health care receipts used to fund the research must be reported on your annual return and subject to MinnesotaCare tax. Receipts that are exempt from tax cannot be used to calculate the credit. The credit is equal to a percentage of expenditures used to fund the qualifying research and is limited to the amount of your MinnesotaCare tax liability for the year. For 2020, the percentage is 1%. To claim the credit, you must file your annual return electronically using our online e-Services system. If you believe you are eligible for the credit, but have not claimed it in the past, contact us so we can update your e-Services account. For additional information on qualifying research and eligibility retirements, go to our website at www.revenue.state.mn.us and enter MinnesotaCare Research Credit in the Search box. Determining Your Tax When you file your return online through e-Services or by phone, your total exemptions, taxable receipts, and tax will be calculated for you based on the information you enter. The tax rate is 1.8%. Estimated Tax Payments Any estimated tax payments you made for the year will be applied to your return. You will be asked to review the payments in e-Services when filing your return. If there are discrepancies between the payments in e-Services and your records, please contact us. Penalties and Interest Late Payment A late payment penalty is assessed on any tax not paid by March 15. The penalty is 5% of the unpaid tax for every 30-day period (or part of a 30-day period) that your tax is not paid in full, up to 15%. Late Filing There is also a penalty for filing your return after the due date. The late filing penalty is 5% of any unpaid tax. Extended Delinquency If the department sends a written demand to file a tax return and the return is not filed within 30 days, an extended delinquency penalty of 5% of the unpaid tax or $100, whichever is greater, will be assessed. This penalty is in addition to any late filing penalty that may be assessed and applies to all unfiled returns, even if you paid the correct amount of tax on time, or do not have a tax liability. Payment Method If you are required to make your tax payments electronically and do not, a 5% penalty will be assessed on any non-electronic payments (such as paper checks or money orders). Interest We charge interest on unpaid tax and penalties from the regular due date of the tax until it is paid in full. The interest rate is determined each year. The interest rate for 2020 is 5%. Paying the Balance Due If you owe additional tax, you can use e-Services to pay at the same time you file your return. Follow the prompts online or on the phone system. You will need your bank’s routing number and your account number. If you pay through e-Services, you will be able to view a record of your payments online once they are processed. If you choose to pay electronically another way or if you pay by check, see the additional payment options on Page 3. How to Amend Your Return To adjust your return, you must file an amended return electronically using our online e-Services system or by phone using our automated phone system. To claim a refund, you must file your amended return within 31/2 years of the regular due date for the year you are amending. 13 How to Amend Your Return (continued) Keep all supporting documentation for any amended return you file. All documentation should be made available on request for the department to review. All amended returns are subject to audit. Filing Instructions To Amend Online To amend a return using our online e-Services system, follow these steps: 1. Go to our website at www.revenue.state.mn.us and log in to e-Services. 2. Select Returns and Periods for your MinnesotaCare tax account. 3. Select View or Change Return for the return you want to amend. 4. Select Change on the return screen. 5. Enter your corrected amounts and the reason you are amending the return. 6. Follow the remaining prompts and select Submit. You will receive a confirmation number if your amended return is filed successfully. To Amend by Phone To amend a return by phone, call 1-800-570-3329 to use our automated phone system. Follow the prompts to file a MinnesotaCare tax return for the year you want to amend and enter your corrected amounts. You will receive a confirmation number if your amended return is filed successfully. If you need help or have questions about amending a return, please contact us. Managing Your Account Profile in e-Services Our e-Services system lets you: • update your web profile information • store your email address, phone number, and banking information • create access to your and other people’s accounts • add additional users with varying security, as well as request and approve third-party access Set Up and Manage Users There are two types of users in e-Services: e-Services Master and Account Manager. An e-Services Master can manage other users and view, file, and/or pay for specific account types. An Account Manager can view, file, and/or pay for specific account types depending on the access an e-Services Master has set up for the user. e-Services has the following access level options: • All Access - allows user total access to update the account, file, and pay • File - allows user to view all information and file returns • Pay - allows user to view all information and make payments • View - allows user to only view all information For instructions on how to create additional logons for users, see Help in e‑Services. Two-Step Verification Two-step verification adds a second layer of security to prevent unauthorized access to your account. You must enter a username, password, and a verification code we send you to log in to your account. Third-Party Access Third-party access is for accountants and other non-employees who file returns and/or make payments on behalf of another business. In order to receive third-party access, the non-employee must request access from the taxpayer. The taxpayer must then grant the access and manage the login of the non-employee before the request can become active. Both parties must be active in e-Services and work together to establish third-party access. For detailed instructions on how to request thirdparty access, go to our website. 14 Worksheet for Filing Provider, Hospital, and Surgical Center Tax Returns You may use this worksheet to record the amounts you need to electronically file your annual return. Keep this worksheet for your records. Do not mail or fax it to the Minnesota Department of Revenue. Record your annual gross receipts and exemption amounts below. Round all amounts to the nearest whole dollar. Gross Receipts (All exemption amounts must be included in Gross Receipts.) Gross Receipts. Enter the total amount received during the year for providing health care services. See instructions for what to include in gross receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exemptions (Do not claim the same receipts on more than one line. See instructions.) Enter the total amount received from: Medicare, including deductibles, coinsurance, and copayments from patients and/or Medicare supplemental plans for Medicare-covered services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Government Agencies in connection with a government program. Do not include payments received from Medical Assistance or MinnesotaCare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FEHBA/TRICARE. Do not include deductibles, coinsurance, and copayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other Health Care Providers, Hospitals, and Surgical Centers responsible for paying MinnesotaCare tax on services you provided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Health Care Research sponsors for services you provided through a formal health care research program . . . . . . . . . . . . Charitable Donations or Home Health Care Services. Include donations that were not designated for a specific individual or group, and amounts for home health care services provided in patients’ residences by a licensed home health agency or home care provider. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Medical Assistance Supplemental Payments. By law, only certain providers and hospitals qualify to receive these payments. See Page 10 of the instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enter the amount paid for: Legend Drugs. If you are claiming any of the exemptions above, you must reduce the amount you paid for legend drugs. See instructions for how to calculate this amount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The following amounts will be calculated for you when you file your return electronically. You may record the amounts here for your records. Total Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taxable Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MinnesotaCare Tax Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . How to File Your Return Electronically You must file your return electronically either online or by phone. Go to www.revenue.state.mn.us and log in to e-Services, or call 1-800-570-3329 to file using our automated phone system. You will receive a confirmation number if your return is filed successfully. If you file online, keep a copy of the confirmation page for your records. If you file by phone, you may record the following information, if applicable, for your records. Amount Due (before penalty and interest) . . . . . . . . . . . . . . . . . . . . . . . Additional Charge for Underpaid Estimated Tax . . . . . . . . . . . . . . . . . . . Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Confirmation Number Date and Time TOTAL DUE or REFUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Rev. 1/21) 15
Extracted from PDF file 2020-minnesota-worksheet-c-provider.pdf, last modified January 2021

More about the Minnesota Worksheet C-Provider Corporate Income Tax TY 2020

We last updated the Provider, Hospital and Surgical Center Tax Return in February 2021, so this is the latest version of Worksheet C-Provider, fully updated for tax year 2020. You can download or print current or past-year PDFs of Worksheet C-Provider directly from TaxFormFinder. You can print other Minnesota tax forms here.

Related Minnesota Corporate Income Tax Forms:

TaxFormFinder has an additional 95 Minnesota income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Minnesota Worksheet C-Provider.

Form Code Form Name
Worksheet C-Use (Obsolete) Legend Drug Use Tax Return
Worksheet C-Dist (Obsolete) Wholesale Drug Distributor Tax Return

Download all MN tax forms View all 96 Minnesota Income Tax Forms


Form Sources:

Minnesota usually releases forms for the current tax year between January and April. We last updated Minnesota Worksheet C-Provider from the Department of Revenue in February 2021.

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About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Minnesota Worksheet C-Provider

We have a total of seven past-year versions of Worksheet C-Provider in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2020 Worksheet C-Provider

Provider, Hospital, and Surgical Center Taxes Instructions

2018 Worksheet C-Provider

2012 MinnesotaCare Tax Instructions for Providers, Hospitals and Surgical Centers

2016 Worksheet C-Provider

Worksheet C Provider 2014.indd

2015 Worksheet C-Provider

Worksheet C Provider 2014.indd

Provider, Hospital and Surgical Center Tax Return 2014 Worksheet C-Provider

Worksheet C Provider 2014.indd

2013 Provider, Hospital and Surgical Center Tax Return 2013 Worksheet C-Provider

2012 MinnesotaCare Tax Instructions for Providers, Hospitals and Surgical Centers


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