ST. PAUL, Minn. – The Minnesota Department of Revenue is helping Minnesota service members take advantage of a refundable tax credit that is about to expire. The Credit for Military Service in a Combat Zone will expire on Oct. 15, 2014, for service time in 2010.
The department recently sent letters to 2,600 qualifying service members to ensure they are aware of the credit and to explain how they can claim it. More than $2.4 million in refunds have already been claimed by service members for the 2010 credit. The average refund is $650.
“We are so grateful for our dedicated service members because they give so much to our country and this military credit is one small way we can thank them for their hard work and sacrifice,” said Revenue Commissioner Myron Frans.
To date, the department has received more than 35,000 claims for the military credit, totaling more than $18 million in refunds.
This credit is for service members who served in a combat zone or qualified hazardous duty area in 2010. The 2010 credit is $120 per month, or partial month served.
To receive the credit, service members must file Form M99, Credit for Military Service in a Combat Zone, and attach corresponding Form DD-214. If still on active duty, service members may attach Leave and Earnings statements for each month of qualifying service. They must have been a Minnesota resident during the time of service to qualify. For more information on the military tax credit and to fill out the form, visit our website at www.revenue.state.mn.us. Applications must be postmarked by Oct. 15, 2014.
Tax credits for service in a combat zone are also available for 2011, 2012 and 2013. For more information, visit the Members of the Military page on our website and sign up for email updates on military credits, application deadlines and tax law changes.
For information on locations that qualify for the tax credit, visit the IRS website at www.irs.gov.