The following credits are available to be claimed on your Minnesota return:
Claim of Right
If you repaid income in 2023 for income you received in a prior year, and the repayment is over $3,000, you may be able to claim a credit. If the repayment is $3,000 or less, you may not claim this credit. Note: your deduction is subject to a 2% floor, and your miscellaneous deductions must exceed 2% of your federal adjusted gross income. For more information, click here.
Long Term Care Insurance Premiums Credit
Paid premiums in the tax year for a qualified long-term care insurance policy for which you did not receive a federal tax benefit. See the following article.
Minnesota Child and Dependent Care Credit
To qualify, your AGI must be $71,210 or less for one qualifying person and $83,210 for two qualifying persons; your filing status is not married filing separate; you paid someone to care for your dependent child; the qualifying person lived with you for more than half the year; you paid someone for household services and you have documentation showing the expenses paid. Please see the following article.
K-12 Education Credit
You may be able to receive a credit if you paid certain types of education-related expenses in 2023 for qualifying children in grades Kindergarten through 12 (K–12). Married persons filing separate returns cannot claim this credit. See the following article.
Credit for Past Military Service
If you have separated from service and your federal adjusted gross income is less than $37,500, you qualify for a credit if you:
- were honorably discharged and receive a military pension or other retirement pay for your service in the military;
- had served in the military for at least 20 years;
- have a service-related disability rated by the U.S. Department of Veterans’ Affairs as being 100 percent total and permanent; or
- did not claim a subtraction for military pension or other military retirement pay on Schedule M1M.
Credit for Taxes Paid to Another State
If you were a resident for all or part of 2021 and you paid income tax both to Minnesota and to another state on the same income, you may be able to reduce your tax. See the following article.
Employer Transit Pass Credit (Form ETP)
Credit for transit passes given or resold to employees. Credit is 30% of the difference in price you pay and price you charge employees. It is non refundable and can only be applied to your current tax liability. See Form ETP
Angel Investment Tax Credit- Expired as of 2022
If you made investment in certain qualifying Minnesota Businesses, you may be eligible for a refundable tax credit equal to 25% of any new investment. The maximum credit amount is $125,000 ($250,000 if married filing jointly).
Enter the amount listed on your Angel Investment Tax Credit Certificate, and include a copy of the certificate with your return. See the DEED website for more information.
Credit for Parents of Stillborn Children (Schedule M1PSC)
You may qualify for the Credit for Parents of Stillborn Children if in the tax year you:
- Experienced a stillbirth
- Received a Certificate of Birth Resulting in Stillbirth from the Minnesota Department of Health, Office of Vital Records
- Would have claimed the child as a dependent if the child had been born alive.
You will need to enter the document control number, and state file number from the Certificate of Birth Resulting in Stillbirth you received from the Minnesota Department of Health. See Schedule M1PSC
Section 529 Plan Credit and Subtraction (M1529)
Individuals that contribute to a 529 College Savings Plan may be eligible for a nonrefundable credit. See Schedule M1529
The Credit is available to part-year and full- year residents of MN. For filers whose Federal Adjusted Gross Income (FAGI) is $88,810 ($184,860 for married filing jointly) or less, the credit is 50% of their net contributions up to $500. The credit phases out as FAGI exceeds $113,810 ($184,860 for married filing joint.
The Subtraction is available to all filers who did not claim the credit. It is equal to the net contributions to qualified account up to $3,000 for married couples filing a joint return and $1,500 for all others.
Within the program, go to:
- State Section
- Edit Minnesota state return
- Education Savings Account Contribution Credit
To claim the credit or subtraction, complete the "Contributions Made to a qualified education savings account" > Add Qualified Savings Account.
Master's Degree in Teacher's Licensure Field (Schedule M1CMD)
Teachers licensed by MN that enroll in an eligible Master's Degree program in a core content area after June 30, 2017 may be eligible for a non-refundable credit up to $2,500 in the year they complete the program. For more information, click here.
Student Loan Credit (Schedule M1SLC)
Minnesota residents and part-year residents making payments on their post-secondary education loans may be eligible for a nonrefundable credit up to $500. Maximum amount allowed is $500 each year (per eligible taxpayer). See Schedule M1SLC
Beginning Farmer Management Credit
Taxpayers must apply and be certified by the Minnesota Rural Finance Authority. Provides a credit for beginning farmers which is someone who has started farming in the last 10 years. The beginning farmer must engage in an acceptable financial management program. See Beginning Farmer Tax Credit.
Owners of Agricultural Assets Credit
Agricultural asset owners who rent or sell their assets to a beginning farmer in Minnesota might be eligible for a nonrefundable credit. Credit may be carried forward for 15 years. See Tax Credit for Owners of Agricultural Assets.