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State Income Tax Refund Subtraction

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Minnesota does not tax your state income tax refund, but it may be subject to federal tax. If you reported a state refund on your federal return from the previous tax year, you may subtract this amount from your Minnesota taxable income.

Who Qualifies

You must have reported a state income tax refund on line 1 of federal Schedule 1.

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

  • You did not file a federal return.
  • You did not include an amount on line 1 of federal Schedule 1.

How to Claim the Subtraction

Check the state refund amount reported on your federal return from last year. You will find the amount on one of these lines:

  • Line 1 of federal Schedule 1
  • Line 11 of Form 1040NR
  • Line 4 of Form 1040NR-EZ

Enter this amount on line 6 of your Minnesota income tax return (Form M1, Individual Income Tax).

For more information, see Minnesota Statute 290.0132, subdivision 3.

Contact Info

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