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Last Updated: 1/23/2018

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 do not owe tax.

Who is eligible for this credit?

You must be eligible for the federal credit to claim the state credit. You can check if you are eligible for the federal credit using the EITC Help and Assistance on the Internal Revenue Service (IRS) website. Complete Schedule M1WFC, Minnesota Working Family Credit to see if you are eligible for this credit.
 

Part-Year Residents

Part-year residents are eligible for the credit even if they move into or out of Minnesota during the year. You must adjust your credit based on the percentage of your income taxable to Minnesota. To do so, complete Schedule M1NR, Nonresidents/Part-Year Residents, and the worksheet in the Schedule M1WFC instructions when calculating your credit.

American Indians

For tax years 2016 and earlier, 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

Military members whose home of record is Minnesota are considered residents for tax purposes. You may claim the federal EITC and the Minnesota Working Family Credit if you meet the requirements. You may include nontaxable combat zone pay as earned income when calculating these credits.
 

Who is not eligible for this credit?

You are not eligible if any of the following apply:
  • 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 were a full-year nonresident in tax year 2015 or later.   
Note: For tax years 2014 and earlier, nonresidents can claim the Working Family Credit. You must adjust your credit based on the percentage of your income taxable to Minnesota.
 

How much is the credit?

Your credit amount 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.
 

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