Correction to 2018 Property Tax Refund Instructions for line 5

The Minnesota Department of Revenue corrected the instructions for line 5 of the 2018 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund.

What was corrected?
Our instructions for line 5 listed “pretax medical and dental premiums” as an example of reportable nontaxable income. However, these premiums should not be reported as nontaxable income.

We updated the 2018 Form M1PR instructions on our website to remove this example.

What do I need to do?
Make sure that you have the latest updates for your filing software.

Do not include pretax medical and dental premiums on line 5 of Form M1PR.

What if I already filed 2018 Forms M1PR for my clients?
Do not amend your clients’ returns for this situation.

We will identify taxpayers who may have reported these premiums on Form M1PR. Beginning in June, we will send these taxpayers a letter asking them to provide us with pretax medical and dental premiums they included on line 5. For reference, we have attached a copy of the letter that will be sent to about 185,000 taxpayers.

Once we receive taxpayers’ responses, we will review their returns to determine if an adjustment is necessary. They may receive a larger property tax refund or an additional refund if they have already received one based on the filed return. No one will receive a reduction as a result of their response regarding line 5.

Note: Clients who receive this letter may contact you to ask what was included on line 5 of their return.

• PTR Line 5 Letter-Final.pdf