Refunds and Credits

Refunds occur when taxpayers or debtors filing either an original or amended return claim an overpayment. Taxpayers and debtors have the right to claim a refund for overpayments made to the Minnesota Department of Revenue.

 

Refunds can offset tax debts or satisfy revenue recapture claims. There is a time limit of 3½ years to claim refunds. View the statute (Minnesota Statutes, section 289A.40, subdivision 1).

 

Credit balances result when payments or credits exceed tax debts or are not applied to debts. Credit balances can be caused by refunds, erroneous remittances, misapplied payments and unfiled or unprocessed returns. In some circumstances, the credits can be used to offset debts.