Coerced Debt Subtraction

Taxpayers with federally taxable debt forgiveness income can subtract taxable coerced debt from their Minnesota tax return. Coerced debt is debt incurred in the victim’s name, and discharged by a court, because of: 

• The use of their personal information without their knowledge or consent
• The use or threat of force, coercion, or similar means
• Economic abuse

Those eligible for the Coerced Debt Subtraction may also subtract taxable coerced debt from the income used to calculate their Homestead Credit Refund. 

Claim the Subtraction

Complete Schedule M1M, Income Additions and Subtractions. Include Schedule M1M when you file Form M1, Individual Income Tax.