Credit for Military Service in a Combat Zone

 
For other tax-related issues that affect service members, see Fact Sheet 5 - Military - Residency or Fact Sheet 5a - Military - Subtractions, Credits, and Extensions.

You may qualify if all of these are true:

• You were a Minnesota resident
• You served in a combat zone or qualified hazardous duty area
• You received combat pay, which is excluded from federal gross income under Internal Revenue Code, section 112

The credit is based on the number of months you served. Partial months count as full months.

For details about combat zones and qualifying hazardous duty areas:

• Go to Combat Zones Approved for Tax Benefits on the Internal Revenue Service website
• Review IRS Publication 3, Armed Forces’ Tax Guide

You can file online or complete and mail Form M99, Credit for Military Service in a Combat Zone, for the year you served. You file Form M99 separately from your income tax return. To receive this credit, you must:

• Include required documentation (see “What documentation do I need?” on this page) with your form
• File Form M99 within 3½ years from the original due date of your income tax return

The credit for months served in a combat zone from January 1, 2017, to December 31, 2017, will expire October 15, 2021.

If you spent additional days in a combat zone after the due date, you can add the number of additional days plus 180 days to the initial 3½ years.

Example
If you served in a combat zone in 2016, you had to file your 2016 Form M99 by October 15, 2020. Starting on June 1, 2017, you spent 60 days in a combat zone. You would have an additional 240 days to claim the credit (60 days plus 180 days). Therefore, you would have until June 10, 2021 (240 days after October 15, 2020) to file 2016 Form M99.

To complete Form M99 for a previous year, go to Find a Form.

If you made an error and need to amend Form M99, complete the paper form for the year you served and mail it to us. You cannot amend Form M99 through our online services.

When competing and mailing the form, you must:

• Include required documentation (see “Documentation Needed” on this page)
• Check the amended box near the top of the form
• Send it within 3½ years from the original due date of your Minnesota income tax return

If someone eligible for the Credit for Military Service in a Combat Zone has died, you may be able to claim the refund on the deceased’s behalf. For eligibility details, review Income Tax Fact Sheet 9 – Filing on Behalf of a Deceased Taxpayer.

To claim the credit:

1. Complete Form M23, Claim for Refund for a Deceased Taxpayer.
2. Attach Form M23 to a completed Form M99, Credit for Military Service in a Combat Zone. When filing for a deceased taxpayer, you must file by paper.
3. Submit both forms with a copy of the death certificate and all other required documentation, as directed in the Form M23 instructions.

• National Guard, Reservists, and retired or discharged active-duty members: For each period of qualifying service, attach a copy of your Form DD-214, Certificate of Release or Discharge from Active Duty.
• Active-duty members: For each month in qualifying status, attach a copy of your Leave and Earnings Statement.

If you do not have the required documentation, you may order copies of the necessary records.

• National Guard and Reserve members may request copies of their DD-214s from the Official Personnel File (OPF) maintained in their unit.
• Inactive Reserve, retired, and discharged military members may order copies of their DD-214s through The National Archives. Start your military service record request on the Archives website.
• Active-duty military members (who did not receive a DD-214 for their duty in combat status) must submit a copy of their Leave and Earnings Statement for each month in a combat zone or qualified hazardous duty area. Go to the military MyPay website to access copies of your statements.

If you cannot get your Leave and Earnings Statements through MyPay, request assistance by calling the appropriate phone number below: