Dual status technicians may qualify for the military pay subtraction

 

If you are a dual status military technician, you may qualify for Minnesota’s military pay subtraction. Claiming this subtraction on your state income tax return may reduce the taxes you owe or increase your refund.

What is the military pay subtraction?

If you are a Minnesota resident and military member, you may subtract federally taxable active-duty military pay when determining your Minnesota tax.

Do I qualify for the subtraction as a dual status technician?

You may qualify for this subtraction if both of the following are true:

• You are a member of the Minnesota National Guard or other reserve component of the U.S. military
• You received paid compensation for one of the following:
  • Service or duty under U.S. Code, title 32 (1983), and travel to or from that service or duty
  • State active service as defined in Minnesota Statute 190.05, subdivision 5a
  • Services performed under Minnesota Statute 190.08, subdivision 3
  • Services performed under the Active Guard Reserve (AGR) Program

How do I claim the subtraction?

Complete Schedule M1M, Income Additions and Subtractions, and include it when you file Form M1, Individual Income Tax.

Can I claim the subtraction for other years?

Yes. If you qualify, you can still claim the subtraction for tax years 2015 through 2018. To claim it for previous years, complete and file an amended Minnesota income tax return (Form M1X). For details, see Amending an Income Tax Return.

Note: The deadline to file a tax year 2015 amended tax return is October 15, 2019.

Where can I find more information? 

See the Minnesota Department of Revenue’s Military Pay Subtraction page. For details on Minnesota’s other military tax benefits, see Military Service Members page.