Foreign Country Income Taxes

You may qualify if you paid subnational income taxes to a foreign country.

However, you may not claim this subtraction if any of the following apply:

• You used the taxes to claim a federal Foreign Tax Credit (federal Form 1116).
• You paid the taxes to Canada.
• You paid the taxes to a local government in a foreign country. The subtraction only applies to state taxes or their equivalent.

Note: If you paid income taxes to a Canadian province, you may qualify for a Minnesota credit. For more information, see Credit for Taxes Paid to Another State. 

Complete Schedule M1M, Income Additions and Subtractions. Include Schedule M1M when filing your Minnesota return (Form M1, Individual Income Tax).

No. This subtraction is only for subnational taxes you paid to a foreign country.