The M1PR is calculated based on the household income. Household income is the sum of:
- Your adjusted gross income
- Most types of nontaxable income
- Your qualified retirement plan contribution
- Dependent, elderly or disabled subtraction
- Co-occupant income
What nontaxable income needs to be added to the return?
- Form 1099-A income, acquisition or abandonment of property gain, not included in your federal income
- subsidy payments as well as employer paid expenses for adoption assistance
- 1099-C income for cancellation of debt (not included on federal return)
- Community Access for Disability Inclusion Waivers
- deferred compensation plan contributions, such as 401(k), 403(b), 457 deferred compensation, or SIMPLE/SEP plan
- Dependent care account (shown on W-2) contribution and/or medical expense account
- Disability benefits
- Distributions from a Roth or traditional IRA not included in Federal Adjusted Gross Income (includes distributions made to charity)
- Employer paid education expenses
- Foreign earned income excluded on the federal return
- Foster care payments
- Gain on the sale of your home ( not included on federal return)
- GI bill funding, scholarships
- Housing allowance
- Medicaid waiver payments
- Medicare Part B premiums
- Combat Zone pay
- Public Safety Officer medical insurance exclusion
- Worker's Compensation Benefits
This list is not all inclusive; please refer to the instructions for Nontaxable Income that must be reported.
What losses and deductions (to the extent they reduced your federal adjusted gross income) must be included in Household Income?
- Educator expenses
- Health savings account, domestic production activities and Archer Medical Savings Account (MSA) deductions
- Capital loss carry forward (use Worksheet 4 in instructions to compute the amount)
- NOL (net operating loss) carry forward or carry back
- Current year passive activity losses, including rental losses, even if actively involved in real estate, in excess of current year passive activity income
- Prior year passive activity loss carry forward, claimed in current year for federal purposes
What is NOT included in Household Income?
- settlement payments from car insurance used to pay medical bills
- child support payments
- child care assistance
- Minnesota property tax refunds
- dependent's income, including Social Security
This list is not all inclusive, please refer to the instructions to see the remaining items that should not be included in Household Income.
What if I am a Part Year Resident?
Renters: File using your income for the period you lived in Minnesota. If you were married, also include your spouse’s income for the period you lived in Minnesota. Include a statement showing how you calculated the income you received during the period you lived in Minnesota.
Homeowners: File using your household income for all of 2018, including the income you received before moving to Minnesota.
For a list of all filing situations, see the M1PR instructions.
For more information, see: