If you paid someone to care for your child or other qualifying person so that you (and your spouse, if filing a joint return) could work or look for work, you may be eligible for a credit based on your qualified expenses. You must have had earned income to take this credit.
Qualified expenses and qualifying person are the same as for the federal credit for child and dependent care expenses. The income limits are $64,230 for taxpayers who have one qualifying individual and $74,990 for taxpayers who have two or more qualifying individuals.
The Minnesota credit is refundable, which means you may benefit from the credit even if you have no state tax liability. This is different from the federal credit which can be used only to offset tax. Before you complete this entry, you must complete federal Form 2441—even if you did not claim the federal credit or file a federal return.
Can I claim the Credit if I am a Part Year or Nonresident?
Nonresidents and part-year residents may be eligible for this credit, which is prorated by the percentage of earned income taxable to Minnesota.
See the M1REF instructions for more information.