Originally from the Minnesota Department of Revenue

ST. PAUL, Minn. -- May is National Military Appreciation Month, and the Minnesota Department of Revenue reminds members of the military and their families about Minnesota’s valuable military-related tax benefits.

“We appreciate the great sacrifices made by Minnesota’s past and present military service members and their families,” said Revenue Commissioner Cynthia Bauerly. “At the Minnesota Department of Revenue, we want to ensure they have the information they need to access these valuable tax benefits for those who qualify.”

The department has a Members of the Military webpage for for taxpayers to learn about military tax benefits and find information on claiming them. Minnesota’s military tax benefits include:

• Military Pension Subtraction. Taxpayers may subtract military retirement pay (including pensions) from their Minnesota taxable income.
  
• Credit for Military Service in a Combat Zone. Taxpayers may qualify for this credit if they served in a combat zone or qualified hazardous duty area on or after January 1, 2014.
  
• Credit for Past Military Service. Veterans of the U.S. military, including the National Guard and Reserves, may qualify for a tax credit up to $750 for past service.
  
• Active-Duty Military Pay Subtraction. Taxpayers may be able to subtract federally taxable active-duty military pay from their Minnesota taxable income.
  
• Filing Extensions. Taxpayers may qualify for an extension if they are serving in the U.S. military and cannot file or pay their Minnesota income tax by the due date.
  
• Market Value Exclusion on Homesteads of Disabled Veterans. Honorably discharged Veterans may qualify for a property tax exclusion on their homestead if they have a service-connected disability rating of 70 percent or higher.
  

See the department’s military tax tips video and sign up for their email subscription service to receive up-to-date military information.

If you have questions, contact us by email at individual.incometax@state.mn.us or phone at (651) 296-3781 or 1-800-652-9094 (toll-free).

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