When you file your Minnesota return, the program uses your Minnesota withholding, estimated payments, extension payments, and refundable credits to determine whether you have a refund or owe additional tax. These payment items are reported on Form M1. Form M1 will include your payments and refund carryforward.
Program Entry
- State
- Edit the Minnesota return using the three dots
- Payments
Applying Part of Your Refund to Next Year
If you receive a Minnesota refund and want to apply part of it to your 2026 estimated tax, enter the amount you want credited to next year. Minnesota reports:
- The amount you want refunded to you on Form M1, Line 29
- The amount you want applied to your 2026 estimated tax on Form M1, Line 30
Please note, if you enter an amount that is greater than your refund or you have a balance due on your state, the amount entered here will not be transferred to your state return.
Other Minnesota Income Tax Withheld
Minnesota withholding is tax that was already paid to Minnesota from income you received during the year. This may include withholding shown on:
- W-2
- Forms 1099
- W-2G
- Forms 1042-S
- Partnership, fiduciary, or S corporation schedules, such as Schedule KPI, KS, or KF
Only enter additional withholding that is not reported on your previously reported income forms. Minnesota withholding is reported on Schedule M1W, and the total from Schedule M1W flows to Form M1, Line 20.
Minnesota Estimated Tax and Extension Payments
If you made Minnesota estimated tax payments during 2025 or paid tax with an extension, those payments are entered in the payments section of the Minnesota return. These amounts are reported on Form M1, Line 21.
Total Payments
Your Minnesota payments are combined on Form M1, Line 23. This includes:
- Minnesota withholding from Form M1, Line 20
- Minnesota estimated tax and extension payments from Form M1, Line 21
- Refundable credits from Schedule M1REF, Line 14, reported on Form M1, Line 22 Refund or Amount Owed
If your total payments are more than your Minnesota tax, you may receive a refund. The refund is calculated on Form M1, Line 24. If your Minnesota tax is more than your total payments, the amount you owe is calculated on Form M1, Line 26.