Mid-October deadline is ahead for military service members to claim their 2019 military tax credit

ST. PAUL, Minn. - The Minnesota Department of Revenue reminds the state’s military service members to take advantage of a refundable military tax credit before it expires. The 2019 Credit for Military Service in a Combat Zone will expire October 16, 2023, for qualifying service members.

More than 3,380 service members were eligible for the 2019 Form M99, Credit for Service in a Military Combat Zone, but about 1,400 service members still have not claimed it.

The credit is $120 per month or partial month served.

“Our military service members earned this tax benefit by putting their personal lives on hold to serve our country in combat zones around the world,” said Revenue Commissioner Paul Marquart. “With the deadline for 2019 fast approaching, we want to make sure they have the resources and information necessary to claim this tax credit.”

To qualify for the credit, service members must have: 

• Been a Minnesota resident during the time of service
• Served in a combat zone or qualified hazardous duty area during 2019
• Received combat pay that is exempt from federal and Minnesota income tax 

The IRS has online information about combat zone locations approved for tax benefits.

How do military service members claim this credit?

To claim the credit electronically: 

• Go to www.revenue.state.mn.us and enter M99 into the Search box. Complete the online form to apply for the credit. 
  • For active-duty members: Upload a Leave and Earnings Statement for each month of qualifying service must be uploaded
  • For National Guard, reservists, and retired or discharged active-duty members: Upload Form DD-214 for each period of qualifying service

To claim the credit by mail:

• Complete the 2019 Form M99, Credit for Military Service in a Combat Zone
  • For active-duty members: Include a Leave and Earnings Statement for each month of qualifying service
  • For National Guard, reservists, and retired or discharged active-duty members: Include Form DD-214 for each period of qualifying service

The department sent letters to more than 1,400 service members on how they may qualify for and claim the credit. Service members have already claimed more than $960,700 in refunds for the 2019 credit, with an average refund of $611. Tax credits for service in a combat zone are also available for 2020, 2021, 2022, and 2023. 

Military members may now claim this credit any time during the calendar year. They no longer need to wait until the year following their service. The 2023 Form M99, is now available to begin filing anytime in the calendar year.  

Check out and share the department’s video explaining who qualifies and how to claim the Credit for Military Service in a Combat Zone. For more information, visit the department’s Military Service Members webpage. 

You can also sign up for email updates by entering your email address and selecting “Military Information” under Individuals.