The Minnesota Working Family Credit helps you keep more of what you earn if you work and receive income below a certain level. 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.
To qualify for the Minnesota credit, you must be eligible for the federal credit and complete the EITC worksheet that comes with your federal tax return. You can check if you’re eligible for the federal credit using the EITC Assistant on the IRS website.
To see if you also qualify for the state credit, complete Schedule M1WFC, Minnesota Working Family Credit. To claim the credit, you must file a state tax return (Form M1, Individual Income Tax) and Schedule M1WFC.
For both the state and federal credit, the amount you receive depends on your income, filing status and whether you have any “qualifying children” living with you. Minnesota uses the same definition as the IRS for “qualifying child.” For more information, see “A Qualifying Child” on the IRS website.
Note: If you file with an Individual Taxpayer Identification Number (ITIN), you’re not eligible for the federal EITC. This means you can’t qualify for Minnesota Working Family Credit, either.
Changes to the Working Family Credit Table
Minnesota did not adopt the increased phase-out range for the Earned Income Tax Credit for married-joint returns for tax year 2012. As a result, taxpayers who 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 may not qualify for the Minnesota Working Family Credit. The table has been updated to reflect this change.
For tax year 2011 only, the Minnesota Working Family Credit table include an additional income phase-out level was increased by $5,000 for married taxpayers filing jointly. This increase coincides with a similar increase in the phase out of the federal Earned Income Credit.
Military members 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, since you must be working to qualify for them.
Part-Year Residents, Nonresidents
Part-year residents and nonresidents must adjust their credit amount, based on the percentage of income they earned in Minnesota. To do so, complete Schedule M1NR, Nonresidents/Part-Year Residents, before calculating your Working Family Credit
American Indians must adjust their credit based on the amount of income that’s taxable to Minnesota. For details, see the worksheet in the Schedule M1WFC instructions.
EIC/WFC information in other languages