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Military Personnel – How Minnesota Taxes Your Income

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This document will help you as a military member understand how Minnesota taxes your income, with special emphasis on active-duty military pay. We will cover three examples based on residency:

Minnesota Resident
Michigan or North Dakota Resident
Nonresident

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Example 1: Minnesota Resident [+]

You are a Minnesota resident and a member of the U.S. or U.N. armed forces, the Minnesota National Guard, or other reserve component in Minnesota.

If you	Then
Received either: federally taxable active-duty military pay federally taxable pay for training and certain types of service, including any of the following: Annual or weekend training State active service (including natural disaster emergency response and missing person searches) Federally funded state active service, including airport security duty, active duty for special work, and active guard reserve (U.S Code, titles 10 and 32)	You qualify for the active-duty military pay subtraction. Enter the amount of that income on Schedule M1M, Income Additions and Subtractions.
Received federally taxable military retirement pay under U.S. Code, title 10 (beginning in tax year 2016)	You may subtract your military retirement pay from your taxable income. Enter the amount of that income on Schedule M1M. If you claim this subtraction, you may not claim the nonrefundable credit for past military service.
Are a U.S. Public Health Service employee and are called to active duty in the armed forces under U.S. Code, title 10	You are eligible for a subtraction of pay received for this period only. Enter the amount of that income on Schedule M1M.

If you

Then

Received either:

federally taxable active-duty military pay
federally taxable pay for training and certain types of service, including any of the following:
- Annual or weekend training
- State active service (including natural disaster emergency response and missing person searches)
- Federally funded state active service, including airport security duty, active duty for special work, and active guard reserve (U.S Code, titles 10 and 32)

You qualify for the active-duty military pay subtraction. Enter the amount of that income on Schedule M1M, Income Additions and Subtractions.

Received federally taxable military retirement pay under U.S. Code, title 10 (beginning in tax year 2016)

You may subtract your military retirement pay from your taxable income. Enter the amount of that income on Schedule M1M.

If you claim this subtraction, you may not claim the nonrefundable credit for past military service.

Are a U.S. Public Health Service employee and are called to active duty in the armed forces under U.S. Code, title 10

You are eligible for a subtraction of pay received for this period only. Enter the amount of that income on Schedule M1M.

Example 2: Michigan or North Dakota Resident [+]

You are a full-year Michigan or North Dakota resident and a member of the Minnesota National Guard.

If you (and your spouse if filing a joint return)	Then
Had no Minnesota source income other than your Minnesota National Guard pay	Your pay is covered by reciprocity if you returned to your home state at least once a month. You do not need to file a Minnesota return. Refer to your home state’s tax department.
Had Minnesota source income that is not covered by reciprocity and meets or exceeds the state minimum filing requirement	Include the amount of your federally taxable Minnesota National Guard income on Schedule M1M. Complete Schedule M1NR, Nonresidents/Part-Year Residents. Do not include your Minnesota National Guard income or any other income you received that is covered by reciprocity in column B.

If you (and your spouse if filing a joint return)

Then

Had no Minnesota source income other than your Minnesota National Guard pay

Your pay is covered by reciprocity if you returned to your home state at least once a month. You do not need to file a Minnesota return. Refer to your home state’s tax department.

Had Minnesota source income that is not covered by reciprocity and meets or exceeds the state minimum filing requirement

Include the amount of your federally taxable Minnesota National Guard income on Schedule M1M.

Complete Schedule M1NR, Nonresidents/Part-Year Residents. Do not include your Minnesota National Guard income or any other income you received that is covered by reciprocity in column B.

Note: See Reciprocity for the types of income covered by reciprocity.

Example 3: Nonresident [+]

You are a nonresident of Minnesota who received federally taxable active-duty military pay. Your military pay is not taxable to Minnesota. Also, your spouse’s wages are not taxable to Minnesota if their legal residence ("domicile") is the same as yours and they are in Minnesota only to be with you.

Note: See How Minnesota Taxes Nonresident Income for information on what types of income are taxable to Minnesota.

If	Then
You (or your spouse if filing a joint return) had no income taxable to Minnesota	You do not need to file a Minnesota return. Refer to your home state’s tax department.
Your income taxable to Minnesota (and your spouse’s if filing a joint return) is less than the state minimum filing requirement	You do not need to file a Minnesota return. Refer to your home state’s tax department.
You (and your spouse if filing a joint return) had income taxable to Minnesota greater than or equal to the state minimum filing requirement	Complete Schedule M1NR. Include your non-military wages and any other income taxable to Minnesota in column B. Do not include your military pay in column B. If your spouse’s domicile is the same as yours and they are in Minnesota only to be with you, do not include their wages in column B.

If

Then

You (or your spouse if filing a joint return) had no income taxable to Minnesota

You do not need to file a Minnesota return. Refer to your home state’s tax department.

Your income taxable to Minnesota (and your spouse’s if filing a joint return) is less than the state minimum filing requirement

You do not need to file a Minnesota return. Refer to your home state’s tax department.

You (and your spouse if filing a joint return) had income taxable to Minnesota greater than or equal to the state minimum filing requirement

Complete Schedule M1NR. Include your non-military wages and any other income taxable to Minnesota in column B. Do not include your military pay in column B.

If your spouse’s domicile is the same as yours and they are in Minnesota only to be with you, do not include their wages in column B.

Contact Info

Email

Contact form

Phone [+]

Questions

651-296-3781
800-652-9094

Hours [+]

Address [+]

Mail your income tax return to:

Minnesota Department of Revenue
Mail Station 0010
600 N. Robert Street
St. Paul, MN 55145-0010

Mail your property tax refund return to :

Minnesota Department of Revenue
Mail Station 0020
600 N. Robert Street
St. Paul, MN 55145-0020

Mail your tax questions to:

Minnesota Department of Revenue
Mail Station 5510
600 N. Robert Street
St. Paul, MN 55146-5510

Street address (for deliveries):
Minnesota Department of Revenue
Individual Income Tax
600 North Robert Street
St. Paul, MN 55101

Returns and payments may be placed in the night deposit box located in front of our building.

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Last Updated

December 17, 2019