News Release: Veterans Day Inspires Reminder of the Minnesota Military Tax Credits

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FOR IMMEDIATE RELEASE
November 10, 2014

Contact: Ryan Brown
Ryan.brown@state.mn.us 

 

Veterans Day Inspires Reminder of the Minnesota Military Tax Credits

 St. Paul, Minn. - As Veterans Day nears, the Minnesota Department of Revenue joins all Minnesotans in remembering the service of our veterans. It also reminds current members of the military and veterans that they may be eligible for hundreds of dollars in military related tax benefits.  

“Veterans Day offers everyone a chance to recall and honor the sacrifices men and women in our armed forces make every day,” said Revenue Commissioner Myron Frans. “We work hard to ensure that these service members have the information they need to claim the tax credits they are entitled to because of their service to our state and country.”

The Credit for Military Service in a Combat Zone is available to members of the military who have served in a designated combat zone or hazardous duty area on or after January 1, 2011. The credit is $120 for each month served. Any portion of a month counts as a full month.

Service members may qualify for the credit if they meet all of the following requirements:

  • They served in a combat zone or qualified hazardous duty
  • They received combat pay, which is exempt from federal and Minnesota income tax
  • Their home of record was Minnesota during their months of service

To claim the credit, file Form M99, Credit for Military Service in a Combat Zone, for the year(s) served. Form M99 is filed separately from Form M1, Minnesota Individual Income Tax Return. Service members may qualify for this refundable credit even if they weren’t required to file a Minnesota income tax return.

More than 1,300 service members have filed their 2013 M99 military credit, totaling $834,000 in claims, for an average credit of $635 per claim.  To date, the department has received more than 35,000 claims for the military credit, totaling more than $18 million in refunds.

Veterans may qualify for a nonrefundable credit up to $750 for past military service. They must meet one or more of the following requirements:

  • They served in the military for at least 20 years
  • They have a service-related disability rated by the U.S. Department of Veterans' Affairs as being 100 percent total and permanent
  • They were honorably discharged and receive a military pension or other retirement pay for their service in the military

To claim the credit, attach Schedule M1C, Other Nonrefundable Credits, to the Minnesota income tax return. Income limitations apply. Thousands of veterans claimed this credit on their 2013 Minnesota income tax return totaling more than $1.35 million in claims.

For more information about military tax credits available or forms and instructions, visit our website at www.revenue.state.mn.us. Click on “Members of the Military” under the Individuals heading. We also offer an email subscription service that provides up-to-date military information. To sign up, click on any little red envelope on our website.

If you have questions, you can contact us by phone: 651-296-3781 or 1-800-652-9094 or email: individual.incometax@state.mn.us               

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