Subtract state tax refunds on Minnesota income tax returns

If your clients received a Minnesota income tax refund or refundable Credit for Tax Paid to Wisconsin this year, they may qualify for a subtraction on their Minnesota income tax return.

Do my clients qualify for this subtraction?

To qualify, your clients must have reported a state income tax refund or refundable Credit for Tax Paid to Wisconsin on line 1 of federal Schedule 1.

Your clients may not claim this subtraction if either of the following apply:

• They did not file a federal income tax return
• They did not include an amount on line 1 of federal Schedule 1

How do my clients claim this subtraction?

Complete line 6 of 2019 Form M1, Individual Income Tax.

Does the Minnesota Department of Revenue report refund amounts to clients?

Yes. We report state income tax refunds on federal Form 1099-G. We report the refundable Credit for Tax Paid to Wisconsin on federal Form 1099-MISC.

Your clients can find these amounts when they receive these forms. They can also use our 1099-G Refund System to look up these amounts.

What if I have questions?

• See our Form 1099-G page
• See our State Income Tax Refund Subtraction page

 

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