Beginning in tax year 2015, full-year nonresidents cannot claim the Working Family Credit.
The Minnesota Working Family Credit is a refundable credit for working individuals whose income is below a certain level. (See Minnesota Statutes, section 290.0671). It is similar to the federal Earned Income Tax Credit (EITC). Both credits are refundable, which means you can receive a refund even if you don’t owe tax.
Who is eligible?
To be eligible for the state credit, you must be eligible for the federal credit. You can check if you are eligible for the federal credit using the EITC Assistant on the IRS website
For both the state and federal credit, the amount you receive depends on your income, filing status, and number of “qualifying children.” Minnesota uses the same definition as the IRS for “qualifying child.” For more information, see “A Qualifying Child”
on the IRS website.
Part-year residents are eligible for the credit even if they move into or out of Minnesota during the year. Part-year residents must adjust their credit based on the percentage of their income that’s taxable to Minnesota. To do so, complete Schedule M1NR, Nonresidents/Part-Year Residents
and the worksheet in the Schedule M1WFC instructions
when calculating your Working Family Credit.
American Indians must adjust their credit based on the amount of income taxable to Minnesota. For details, see the worksheet in the Schedule M1WFC instructions
Military members whose home of record is Minnesota are considered residents for tax purposes. If you meet the requirements, you may claim the federal EITC and the Minnesota Working Family Credit. You may include nontaxable combat zone pay as earned income when calculating these credits.
Who is not eligible?
You are not eligible if:
- you file with an Individual Taxpayer Identification Number (ITIN)
- you are at the higher end of the income eligibility range for the federal credit, are married filing a joint return, and/or have three or more children (beginning in tax year 2012)
- you are a full-year nonresident (beginning in tax year 2015)
Note: For tax years 2014 and earlier, nonresidents can claim the Working Family Credit. You must adjust your credit based on the percentage of the income that’s taxable to Minnesota.
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