Military service members: Tax benefits are available


(5/20/2019)

This National Military Appreciation Month the Minnesota Department of Revenue reminds members of the military and their families about the valuable military-related tax benefits available to them in Minnesota.

“Serving in our country’s armed forces is a great sacrifice for military members — past and present — and their families,” said Revenue Commissioner Cynthia Bauerly. “We thank these brave Minnesotans and want to remind them of the many tax benefits that are available to them because of their service to our state and country.”

The department has a Members of the Military webpage for taxpayers to learn about military tax benefits, and find information on claiming them, at https://www.revenue.state.mn.us/individuals/individ_income/Pages/Members_of_the_Military.aspx. Minnesota’s military tax benefits include:

• Military pension subtraction: taxpayers may subtract military retirement pay (including pensions) from their Minnesota taxable income.

• Credit for military service in a combat zone: taxpayers may qualify for this credit if they served in a combat zone or qualified hazardous duty area on or after January 1, 2015.

• Credit for past military service: veterans of the U.S. military, including the National Guard and Reserves, may qualify for a tax credit up to $750 for past service.

• Active-duty military pay subtraction: taxpayers may be able to subtract federally taxable, active-duty military pay from their Minnesota taxable income.

• Filing extensions: taxpayers may qualify for an extension if they are serving in the U.S. military and cannot file or pay their Minnesota income tax by the due date.

• Market value exclusion on homesteads of disabled veterans: honorably discharged veterans may qualify for a property tax exclusion on their homestead if they have a service-connected disability rating of 70 percent or higher.

See the department’s military tax tips video at https://www.youtube.com/watch?v=0tNQR9Qc4s4&feature=youtu.beand. If you have questions, contact individual.incometax@state.mn.us, 651-296-3781, or 1-800-652-9094 (toll-free). Get the latest news and updates from the department by following the department on Facebook and Twitter.

 

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