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Last Updated: 12/11/2018

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 obtain a refund.

Are my royalties taxable in Minnesota if I’m not a state resident?

If your Minnesota gross income from royalties and other Minnesota sources is below the minimum filing requirement ($10,400 for 2017), your royalties are not taxable in Minnesota. In this case, you are not required to file a Minnesota return. For more information 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 and provide it to your royalty payer.