Tuesday, May 16, 2017

Depr of Revenue highlights tax benefits available to military members

ST. PAUL, Minn. -- May is National Military Appreciation Month and the Minnesota Department of Revenue reminds members of the military and their families about the many valuable state tax benefits available to them.

“Minnesota offers military service members – past and present – tax benefits as a way to show appreciation for the sacrifices they have made. We want to make sure military members and veterans have all the information they need to claim the credits that are available to them and their families,” said Revenue Commissioner Cynthia Bauerly.

The department has a dedicated webpage for members of the military. This is a centralized spot for members of the military to learn about military tax benefits and find information on claiming the credits they are entitled to:

  • New in 2016 - Military Pension Subtraction. Certain military retirement pay (including pensions) can be subtracted from your Minnesota taxable income.
  • Credit for Military Service in a Combat Zone. You may qualify for this credit if you served in a combat zone or qualified hazardous duty area on or after January 1, 2013.
  • Credit for Past Military Service. If you are a veteran of the U.S. military, including the National Guard and Reserves, you may qualify for a tax credit of up to $750 for your past service.
  • Active-Duty Military Pay Subtraction. Members of the military who are Minnesota residents may subtract federally taxable active-duty military pay when determining their Minnesota tax.
  • Filing Extensions. If you are serving in the U.S. military and cannot file or pay your Minnesota income tax by the due date, you may be eligible for an extension.
  • Market Value Exclusion on Homesteads of Disabled Veterans. If you are an honorably discharged veteran who has a service-connected disability rating of 70 percent or higher, you may qualify for a property tax exclusion on your homestead.

You can check out our military tax tips video and sign up for our email subscription service to receive up-to-date military information.

If you have questions, contact us by email at individual.incometax@state.mn.us or phone at 651-296-3781 or 1-800-652-9094 (toll-free).