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Last Updated: 10/26/2017

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Individual Income Tax > Tax Information > Filing Requirements for Active Duty Military Members

  • I received federal active duty military pay and am a Minnesota resident. Do I have to pay state taxes?Back to top

    You are not required to pay Minnesota tax on your federal active duty military pay for services performed under your orders.

    Beginning in 2005, if you are a Minnesota resident who is serving on federal active duty, you are allowed a subtraction of your active duty military pay (to the extent it is federally taxable) for the time you are stationed outside of Minnesota.  On June 1, 2011, the subtraction was expanded to include nonresidents and all active duty military pay, regardless of where you were stationed.   For more information see Filing Requirements for Active-Duty Military Members.

    As a Minnesota resident, you may qualify for some of the state’s refundable credits (such as the Working Family Credit). In order to claim these credits, you must file a Minnesota return.​

  • I am a Minnesota resident stationed outside Minnesota on federal active duty orders for the entire year, and Minnesota withholding was taken from my paycheck. How do I get this money back?Back to top

    You need to file a Minnesota return in order to receive a refund of your withholding.  Use the subtraction on Schedule M1M to take a subtraction of your federal active duty pay (to the extent it is federally taxable).  For any federal active duty pay received before June 1, 2011, only the portion earned outside Minnesota qualifies for the subtraction.​

  • I am not a resident of Minnesota, but I spent part of my time stationed in the state under federal active duty orders. How do I file my return? Back to top

    After June 1, 2011, federal active duty pay of nonresidents earned in Minnesota is not taxed by Minnesota.  If all of your income was from federal active duty orders, you are not required to file a Minnesota return.

    However, you must file a Minnesota return if your Minnesota sourced income is greater than the minimum filing requirement ($10,350 in 2016).  Use Schedule M1M to subtract your federal active duty pay from Minnesota taxable income.​

  • I am a Minnesota resident serving on federal active duty orders outside of Minnesota, but my spouse still lives and works in Minnesota with our children. How do we file our return?Back to top

    You will file a joint return (if you make the election) as Minnesota residents.  Both of your incomes will be included on the return, but you will be allowed a subtraction of your federal active duty pay (to the extent it is federally taxable) on Schedule M1M.  For any federal active duty pay received before June 1, 2011, only the portion earned outside Minnesota qualifies for the subtraction.

    You will only be taxed on your spouse’s income and any other Minnesota source income.  You are still eligible for any Minnesota credits.

    If your Minnesota source income is below $10,350 in 2016, you are not required to file a return.