Royalty Recipients

If you received mining and exploration royalties, you should claim the amount of Minnesota income tax withheld. To do this, complete Schedule M1W, Minnesota Income Tax Withheld, and include it with your Minnesota income tax return (Form M1, Individual Income Tax). Do not send in your federal Form 1099 or other forms reporting the tax withheld.

Note: If your royalty payer incorrectly withheld Minnesota tax, you must file a Minnesota income tax return to get a refund.

Are my royalties taxable if I am not a Minnesota resident?

Yes, if your Minnesota gross income from royalties and other Minnesota sources is above the minimum filing requirement ($13,825 for 2023). For details on Minnesota gross income, see Calculating Minnesota Gross Income.

What if I do not owe Minnesota income tax?

You can claim exemption from Minnesota withholding if you did not owe Minnesota income tax last year and reasonably expect not to owe this year. Complete Form W-4MN, Minnesota Withholding Allowance/Exemption Certificate, and provide it to your royalty payer.