Foreign Country Income Taxes


If you are a Minnesota resident, you may subtract any “subnational” (equivalent to a state) income taxes you paid to a foreign country from Minnesota taxable income for tax years 2018 and earlier.

Who Qualifies

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

You may not claim this subtraction if any of these apply:

  • You used the taxes to claim a federal Foreign Tax Credit (federal Form 1116).
  • You subtracted the foreign income on your federal return.
  • 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 details, go to Credit for Taxes Paid to Another State

Claim the Subtraction

Complete Schedule M1M, Income Additions and Subtractions. Include Schedule M1M when filing your Minnesota return for tax years 2018 and earlier (Form M1, Individual Income Tax).

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