In recognition of National Military Appreciation Month, Revenue reminds military service members about available tax benefits
ST. PAUL, Minn. - May is National Military Appreciation Month and the Minnesota Department of Revenue reminds military service members and their families about Minnesota’s valuable military-related tax benefits available to them.
“Each year we like to remind military service members of the state tax benefits that may be available to them,” said Revenue Commissioner Cynthia Bauerly. “These are valuable benefits that can result in a larger tax refund or a reduction in the amount of taxable income a service member claims on their return.”
- Military Pension Subtraction. Taxpayers may subtract military retirement pay (including pensions) from their Minnesota taxable income.
- Credit for Military Service in a Combat Zone. Taxpayers may qualify for this credit if they served in a combat zone or qualified hazardous duty area on or after January 1, 2016.
- Credit for Past Military Service. Veterans of the U.S. military, including the National Guard and Reserves, may qualify for a tax credit up to $750 for past service.
- Active-Duty Military Pay Subtraction. Taxpayers may be able to subtract federally taxable active-duty military pay from their Minnesota taxable income.
- Filing Extensions. Taxpayers may qualify for an extension if they are serving in the U.S. military and cannot file or pay their Minnesota income tax by the due date.
- Market Value Exclusion on Homesteads of Disabled Veterans. Honorably discharged veterans may qualify for a property tax exclusion on their homestead if they have a service-connected disability rating of 70% or higher.
A full list of benefits available to military service members can be found by searching Keyword Military. See the department’s military tax tips video and sign up for email alerts to receive up-to-date military tax information.
If you have questions, email firstname.lastname@example.org, or call 651-296-3781 or 1-800-652-9094 (toll-free).