Minnesota Minnesota Individual Income Tax Instructions (Form M1)

Minnesota Individual Income Tax Instructions (Form M1)
2023 Minnesota Individual Income Tax Return (M1) Instructions
2023

Minnesota
Individual
Income Tax
Forms and Instructions

> Form M1

Minnesota Individual Income Tax Return

> Schedule M1W

Minnesota Income Tax Withheld

> Schedule M1SA

Minnesota Itemized Deductions

> Schedule M1MA
Marriage Credit

> Schedule M1CWFC

Minnesota Child and Working Family Credits

> Schedule M1REF
Refundable Credits

> Schedule M1C

Nonrefundable Credits

> Schedule M1M

Income Additions and Subtractions

651-296-3781
1-800-652-9094

www.revenue.state.mn.us

To file electronically, go to

www.revenue.state.mn.us
Go to www.revenue.state.mn.us to:
• File and pay electronically
• Get forms, instructions, and fact sheets
• Get answers to your questions
• Check on your refund
• Get Form 1099-G refund information
Call our automated system at
651-296-4444 or 1-800-657-3676 to:
• Check on your refund
• Get Form 1099-G refund information
Questions?
• Email at [email protected]
• Call 651-296-3781 or 1-800-652-9094
• Write to:
Minnesota Department of Revenue
Mail Station 5510
600 N. Robert St.
St. Paul, MN 55146-5510
This information is available in alternate formats.

Inside This Booklet

What’s New for 2023  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3-4
Information for Federal Return  .  .  .  .  .  .  .  .  .  .  .  . 5
Use Tax Information  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
Filing Requirements/Residency  .  .  .  .  .  .  .  .  .  .  . 6-8
Getting Started  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9
Filing Instructions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
Use of Information  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
Line Instructions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .11-19
Payment Options  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20
Penalty and Interest  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .20-21
Other Information .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22
Military Personnel .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 23
Tax Tables  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .24-30
Tax Rate Schedules  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 31
How to Get Forms .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 31

Where’s My Refund?

We review every return to verify the information and make sure the right refund goes to the right person. Each return is
different, so processing time will vary. To check your refund status, go to www.revenue.state.mn.us and type Where’s
My Refund into the Search box. With this system, you can:
• See if we’ve received your return
• Follow your return through the process
• Understand the steps your return goes through before a refund is sent
• See the actual date your refund was sent
When you use Where’s My Refund, we ask for your Social Security number, date of birth, and the exact amount of your
refund.

Free Tax Help

Free tax preparation is available from IRS-certified volunteers at locations across Minnesota to assist individuals 60 or
older, with a disability, with annual income less than $64,000, or speaking limited or no English.
To find a volunteer tax preparation site:
• Go to www.revenue.state.mn.us and enter Free Tax Preparation into the Search box
• Call 651-297-3724 or 1-800-657-3989
Note: If you need assistance in a language other than English, call us at 651-296-3781 or 1-800-652-9094 for free
interpreter services.
Nota: Si usted necesita asistencia en un idioma que no sea inglés, llámenos al 651-296-3781 o al 1-800-652-9094 para
servicios de intérprete gratuitos.
Lub Ceeb Toom: Yog tias koj xav tau kev pab lwm hom lus uas tsis yog lus Askiv, hu rau peb ntawm 651-296-3781 lossis
1-800-652-9094 kom tau txais kev pa txhais lus dawb.
Xasuusin: Haddii aad caawimo ugu baahantahay luqad aan Ingiriisi ahayn, naga soo wac 651-296-3781 ama 1-800-6529094 si aad u hesho adeegyo turjubaan bilaash ah.

What’s new for 2023?

Child Tax Credit and Working Family Credit

Beginning with tax year 2023, you may be eligible to claim a Child Tax Credit. You may be eligible to receive $1,750 per qualifying
child. The credit is combined with the Working Family Credit and is reduced when the greater of your earned income or adjusted gross
income exceeds $29,500 ($35,000 if you are married and filing a joint return). See Schedule M1DQC, Dependents and Qualifying
Children to help determine qualifying children and Schedule M1CWFC, Minnesota Child and Working Family Credits, for details on
the Child Tax Credit.

Social Security Subtraction

If you received social security benefits and your adjusted gross income is below certain thresholds, you may be eligible to subtract the
full amount of your taxable benefits. The thresholds are $78,000 for Single or Head of Household, $100,000 for Married Filing Jointly
or Qualifying Surviving Spouse and $50,000 for Married Filing Separately. If your income is greater than the threshold amounts, you
may be eligible to subtract a portion of your benefits. See Line 12 of Schedule M1M for more information.

Qualified Retirement Benefit Subtraction

If you received a pension for certain public service, there is a new subtraction for pension income. You may be eligible for a subtraction up to $12,500 ($25,000 for a married taxpayer filing a joint return or qualified surviving spouse). See Line 29 of Schedule M1M
for more information.

Minnesota Education Credit

Beginning in tax year 2023, there will be changes to the amount of the credit and the income limitations. The definition of income
used for purposes of the credit has been changed to adjusted gross income rather than household income. The credit amount per
qualifying child increased from $1,000 to $1,500. The total credit is then reduced as your income exceeds the $70,000. The previous
limitation was $33,500. See schedule M1ED, K–12 Education Credit, for more information.

Dependent Care Credit

You do not have to be married and filing a joint return to claim the credit for a child born during the year. You may be eligible to calculate your credit using $3,000 of expenses for your child born in 2023, even if you did not have actual expenses for that child or only
one spouse had earned income. See schedule M1CD, Child and Dependent Care Credit, for more information.

Standard Deduction
The standard deduction increased for each filing status. Determine your standard deduction on page 11. These are the standard deduction amounts determined for your filing status:
• $13,825 for Single
• $27,650 for Married Filing Jointly or Qualifying Surviving Spouse
• $13,825 for Married Filing Separately
• $20,800 for Head of Household
If you are married and filing a separate return, you may only claim the standard deduction if your spouse did not itemize deductions.
If you can be claimed as a dependent on another person’s tax return, see the instructions for line 4 to determine your standard deduction amount.
The standard deduction is reduced by up to 80% if your adjusted gross income exceeds $220,650 ($110,325 if you are married and filing a separate return). If your adjusted gross income is equal to or more than $1,000,000, your standard deduction is reduced by 80%.
You may not claim the standard deduction if either of these apply:
• You are filing a return for a period of less than twelve months due to changes in the annual account period
• You are a nonresident alien of the United States
• An exception applies if you claim the standard deduction under a U.S. income tax treaty

3

What’s new for 2023? (cont.)
Itemized Deductions

Minnesota itemized deductions are reported on Schedule M1SA, Minnesota Itemized Deductions. For more information, see page 11.
You may itemize deductions on your Minnesota income tax return even if you claimed the standard deduction on your federal income
tax return. Itemized deductions are reduced if your adjusted gross income exceeds $220,650 ($110,325 if you are married and filing a
separate return). If your adjusted gross income exceeds $1,000,000, you are limited to 20% of your itemized deductions.

Dependent Exemptions

The dependent exemption amount is $4,800 for each qualifying dependent in 2023. Your total exemption amount is reduced if your
income exceeds certain amounts based on your filing status:
• $220,650 for Single
• $330,950 for Married Filing Jointly or Qualifying Surviving Spouse
• $165,475 for Married Filing Separately
• $275,800 for Head of Household
See Schedule M1DQC, Dependents and Qualifying Children, to determine who qualifies and how much you can deduct. Enter information on dependents on Schedule M1DQC and provide a copy of the schedule with Form M1.

Volunteer Mileage Reimbursement Subtraction

If you received mileage reimbursement in service of a charitable organization, you may now subtract the amount you received that exceeded the volunteer mileage rate (14 cents per mile). The maximum amount of the subtraction is limited to 51.5 cents per mile (65.5
cents per mile minus 14 cents per mile). For details, see Schedule M1M, Income Additions and Subtractions.

CRP System Update for Landlords

All residential property owners and managers can use e-Services to create and manage Certificates of Rent Paid (CRPs) for Minnesota
properties. There is no cost to use this service.
Landlords are not required to use e-Services to create CRPs for rent paid in 2023. However, landlords will be required to use e-Services to create CRPs for rent paid in 2024.
After creating a username, when you log in to e-Services you can import your data from a spreadsheet or use a step-by-step process to
enter your data.
For more information, go to www.revenue.state.mn.us and enter landlords in the Search box to find our CRP Information for Landlords webpage.

4

Information for Your Federal Return
State Refund Information—Line 1 of Federal Schedule 1

If you received a state income tax refund in 2023 and you itemized deductions on your 2022 federal Form 1040, you may need to
report an amount on line 1 of your 2023 federal Schedule 1. For details, see the Form 1040 instructions.
To find out how much your Minnesota income tax refund was:
• Review your records
• Use our 1099-G Refund System (go to www.revenue.state.mn.us and enter 1099-G into the Search box)
• Call 651-296-4444 or 1-800-652-9094

Deducting Real Estate Taxes—Federal Schedule A (Line 5b)

You are allowed a tax deduction on federal Schedule A for real estate taxes you paid in 2023. If you received a property tax refund
for these taxes on a 2022 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund, subtract that
refund amount from your property taxes paid when calculating your deduction on Schedule A.

Deducting Vehicle License Fees—Federal Schedule A (Line 5c)

You may deduct part of your Minnesota vehicle license fee as personal property tax on line 5c of federal Schedule A. Other amounts,
such as the plate fee and filing fee, are not deductible and cannot be used as an itemized deduction.
Calculate the allowed deduction by subtracting $35 from your vehicle’s registration tax for each vehicle you register. To find the
registration tax:
• Go to www.dps.mn.gov and select Online Resources. Under Vehicle Services, select More Vehicle Services. Then select Search
for Registration Tax Paid.
• Look at the vehicle registration renewal form issued by Driver & Vehicle Services

Did you purchase items over the internet or through the mail?

If you purchased taxable items for personal use and did not pay Minnesota Sales Tax, you may owe Use Tax. Generally, Use Tax is the
same rate as the state Sales Tax. If you live in a local tax area, include the Use Tax that is applicable to your local Use Tax.
You may owe Use Tax if you purchase taxable items:
• Over the internet, by mail order, etc., and the seller does not collect Minnesota Sales Tax from you.
• In a state or country that does not collect Minnesota Sales Tax from you.
• From an out-of-state seller who properly collects another state’s Sales Tax at a rate lower than Minnesota’s Sales Tax. (In this case,
you owe the difference between the two rates).
Add all of your taxable purchases. If they total more than $770, file Form UT1, Individual Use Tax Return, by April 15, 2024, for all
taxable items you purchased during the calendar year. If your total purchases for personal use are less than $770, you do not have to
file and pay Use Tax.
To file online, go to www.revenue.state.mn.us and enter Individual Use Tax into the Search box. Then, select Individual Use Tax
Return Online Filing System. Follow the prompts to file your return.
Form UT1 and Sales Tax Fact Sheet 156 are available on our website or by calling 651-296-6181 or 1-800-657-3777.

Local Use Taxes

If you buy taxable items for use in the cities and counties listed in Sales Tax Fact Sheet 164, you must also pay local Use Tax at the
rates listed.

5

Filing Requirements

Am I required to file a Minnesota Individual Income Tax return?

Yes, if any of these apply:
• You were a Minnesota resident for the entire year in 2023 and your income was more than the amount in the chart below for your
filing status
• You were a part-year or nonresident and meet the requirements under Filing Requirements for Part-Year Residents and
Nonresidents
• You qualify for and want to claim refundable credits
• You were a nonresident alien of the United States, had income assignable to Minnesota, and were required to file a federal return

Minnesota Residents

File a 2023 Minnesota income tax return if your income is more than the amount that applies to you in the chart below.
You are a Minnesota resident if either of these apply:
• Minnesota was your permanent home in 2023
• Minnesota was your home for an indefinite period of time and you maintained an abode (house, townhouse, condominium,
apartment, mobile home, or cabin, with cooking and bathing facilities, that could be lived in year-round) in Minnesota
For more information, see Income Tax Fact Sheet 1, Residency.

Residents Who Are Not a Dependent

If you were a Minnesota resident for all of 2023 and required to file a federal income tax return, you are required to file a Minnesota
income tax return. If you are age 65 or older, your income and lifestyle changes may affect your Minnesota income taxes. See Fact
Sheet 6, Seniors, for more information.

Residents Who Are a Dependent

If your parent (or someone else) can claim you as a dependent, use the Worksheet for Line 4 — Dependent Standard Deduction to
determine your filing requirement. If your gross income is greater than the amount of your standard deduction determined in the worksheet, you must file a Minnesota income tax return.
Your gross income is the total of your earned and unearned income. Your earned income includes salaries, wages, tips, professional
fees, and taxable scholarship and fellowship grants. Your unearned income includes taxable interest, ordinary dividends, capital gains
distributions, unemployment compensation, taxable social security benefits, pension, annuities, and distributions of unearned income
from a trust.
If your filing status* is

And

Then you must file a Minnesota income tax
return if your income was at least

Single

You were born on or after January 2, 1959

$13,825

You were born before January 2, 1959

$15,675

You and your spouse were born on or after January 2, 1959

$27,650

You or your spouse was born before January 2, 1959

$29,100

You and your spouse were born before January 2, 1959

$30,550

You were born on or after January 2, 1959

$20,800

Married Filing Jointly

Head of Household

You were born before January 2, 1959

$22,650

Married Filing Separately

Any age

$5

Qualifying Surviving
Spouse

You were born on or after January 2, 1959

$27,650

You were born before January 2, 1959

$29,100

*Use the same filing status from your federal income tax return. If you did not file a federal return, see the Form 1040 instructions.
If you are not required to file a Minnesota return, you can still file to:
• Claim refundable credits (K–12 Education, Child and Working Family, Child and Dependent Care, Parents of Stillborn Children)
• Get a refund if your employer issued you a 2023 Form W-2 reporting Minnesota income tax withheld from your wages

6

Filing Requirements (cont.)
Part-Year Residents

File a Minnesota income tax return if you moved into or out of Minnesota in 2023 and your 2023 Minnesota source income is $13,825
or more. Complete Schedule M1NR, Nonresidents/Part-Year Residents, to determine income received while a Minnesota resident and
income received from Minnesota sources while a nonresident. Your Minnesota tax is based on that income.

Nonresidents

If you were a resident of another state but lived in Minnesota, file a Minnesota income tax return as a Minnesota resident if both of
these applied to you:
• You were physically in Minnesota for 183 days or more during the tax year
• You or your spouse owned, rented, lived in, or leased an abode (house, townhouse, condominium, apartment, mobile home, or
cabin, with cooking and bathing facilities, that could be lived in year-round) in Minnesota
If both conditions apply, you are considered a Minnesota resident for the length of time you maintained an abode in Minnesota.
File a Minnesota income tax return if you meet the filing requirements in the next section. For more details, see Income Tax Fact
Sheet 2, Part-Year Residents, and Income Tax Fact Sheet 3, Nonresidents.

Filing Requirements for Part-Year Residents and Nonresidents

1. Determine your total income from all sources (including sources not in Minnesota) while a Minnesota resident.
2. Determine the total of the following types of income you received while a nonresident of Minnesota:
• Wages, salaries, fees, commissions, tips, and bonuses for work done in Minnesota.
• Gross rents and royalties received from property located in Minnesota.
• Gains from the sale of land or other tangible property in Minnesota.
• Gross winnings from gambling in Minnesota.
• Gains from the sale of a partnership interest, to the extent the partnership had property or sales in Minnesota.
• Gains reported on Schedule M1AR, Accelerated Recognition of Installment Sale Gains.
• Gains on the sale of goodwill or income from an agreement not to compete connected with a business operating in Minnesota.
• Minnesota gross income from a business or profession conducted partially or entirely in Minnesota. This is the amount from
line 7 of federal Schedule C or line 9 of Schedule F of Form 1040. Gross income from a partnership, S corporation, or trust or
estate is the amount on line 36 of Minnesota Schedule KPI, line 36 of Schedule KS, or line 45 of Schedule KF.
3. Add step 1 and step 2. If the total is $13,825 or more, you must file a Minnesota income tax return and Schedule M1NR.
If the result is less than $13,825 and you had amounts withheld or paid estimated tax, file a Minnesota income tax return and Schedule
M1NR to receive a refund. If you are married and filed a joint federal return, you must file a joint Minnesota return even if only one
spouse has Minnesota income. Complete Schedule M1NR and include a copy of the schedule when you file your return.

Seniors and Taxpayers with Disabilities
If you
Were born before January 2, 1959

And you
Meet certain income requirements for 2023

Are permanently and totally disabled at the
end of 2023

• Meet certain income requirements for 2023
• Received federally taxable disability income in 2023

Then
You may qualify for an
income tax subtraction
on Schedule M1R.

Other benefits you may be eligible for include:
• Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund (Form M1PR)
• Senior Citizens’ Property Tax Deferral Program
• Special Homestead Classification: Class 1b (for qualifying blind and disabled property owners)
For more information on tax issues for seniors, visit our website at www.revenue.state.mn.us, or call us at 651-296-3781 or 1-800652-9094.

7

Filing Requirements (cont.)
Michigan and North Dakota Residents

Minnesota has reciprocity agreements with Michigan and North Dakota. You are not subject to Minnesota income tax if both of these
applied in 2023:
• You were a full-year resident of Michigan or North Dakota and returned to your home state at least once a month
• Your only Minnesota income was from personal or professional service income (wages, salaries, tips, commissions, and bonuses)
Complete Schedule M1M, Income Additions and Subtractions, to file for a refund of withholding if you are a Michigan or North
Dakota resident. For more information, see Income Tax Fact Sheet 4, Reciprocity.
Follow the steps below to complete your Form M1 and Schedule M1M:
1. Enter the appropriate amounts from your federal return on lines A through D and line 1 of Form M1.
2. Skip lines 2 through 6 of Form M1.
3. Enter the amount from line 1 of Form M1 on line 18 of Schedule M1M and on line 7 of Form M1. Place an X in the box for line 18
of Schedule M1M to indicate the state of which you are a resident.
4. Complete the rest of Form M1. In addition to Schedule M1M, complete and enclose Schedule M1W, Minnesota Income Tax Withheld, and a copy of your home state tax return. Do not complete Schedule M1NR.
If your wages are covered by reciprocity and you do not want your employer to withhold Minnesota tax in the future, file Form MWR,
Reciprocity Exemption/Affidavit of Residency, each year with your employer.
If you are filing a joint return and only one spouse works in Minnesota under a reciprocity agreement, include both of your names,
Social Security Numbers, and dates of birth on your return.
If your gross income assignable to Minnesota from sources other than from personal or professional service income covered under
reciprocity is $13,825 or more, you are subject to Minnesota tax on that income. File a Minnesota income tax return and Schedule
M1NR. You may not take the reciprocity subtraction on Schedule M1M.

Aliens and Nonresident Aliens

If you are not a United States citizen or national, then you are considered an alien for tax purposes. You must determine your residency
status for federal tax purposes before you can determine your Minnesota tax responsibilities. To determine your federal residency
status, see IRS Publication 519, U.S. Tax Guide for Aliens.
If you are considered a resident alien for federal tax purposes, you have the same filing and tax requirements of a United States citizen.
You will determine your Minnesota filing requirement following the requirements listed under Minnesota Residents, Part-Year Residents, and Nonresidents.
If you are considered a nonresident alien for federal tax purposes, you may be required to file a Minnesota income tax return depending on your Minnesota residency status and Minnesota gross income. If you are a full-year resident under the 183-day rule and
required to file a federal income tax return, you must file a Minnesota income tax return. If you are a part-year resident or nonresident
under the 183-day rule and have gross income from Minnesota sources of at least $5, you must file a Minnesota tax return and Schedule M1NR.

How does the department protect my information?

Protecting your information and identity is our priority. We have partnered with other states, the IRS, financial institutions, and tax
preparation software developers to combat fraud.
For more information about keeping your identity safe, go to:
• www.revenue.state.mn.us and enter Protecting Your Identity into the Search box
• www.irs.gov (IRS)
• www.ag.state.mn.us (Minnesota Attorney General’s Office)
We will never ask you to provide, update, or verify personal information through unsolicited email or phone calls.
If you are concerned about a potentially fraudulent contact by someone claiming to be from Revenue, call 651-296-3781 or
1-800-652-9094. We can determine if the contact you received was legitimate.

8

Getting Started
What do I need?
•
•
•
•

Reminder: Review your return before signing. You are
legally responsible for all information on your return,
even if you paid someone to prepare it for you.

Your name and address
Your Social Security Number
Your completed federal return
Your date of birth

If you do not provide this information, your refund will be delayed. If you owe tax, your payment may not be processed, and you may
have to pay a penalty for late payment.
If a paid preparer completed your return, they must include their Preparer Tax Identification Number (PTIN).
Although not required on the return, we also ask for:
• A code number indicating a political party for the State Elections Campaign Fund if you want to designate a contribution
• Your phone number in case we have questions about your return
• Your paid preparer’s phone number

Name and Address Area

Use capital letters and black ink. Print your legal name, not a nickname. Enter only one address - your current home address or your
post office box. If your current address is a foreign address, put an X in the Foreign Address box.
If you are married and filing separate income tax returns, enter your spouse’s name and Social Security Number in the filing status
area. Do not enter your spouse’s name or Social Security Number in the name and address area at the top of your return.

Federal Filing Status

Use the same filing status you used on your federal return to file your Minnesota return. Put an X in the box for your filing status.
If you filed federal Form 1040-NR and selected “Married nonresident alien” for your filing status, put an X in the box for “Married
Filing Separately” on your Minnesota return.

Dependents and Qualifying Children

Enter dependent information on Schedule M1DQC, Dependents and Qualifying Children. Use the same information you provided
when completing federal Form 1040. Follow instructions on Schedule M1DQC to determine who may be claimed as a qualifying child
for the Minnesota Child Tax Credit and the credit for qualifying older children. If you have more than three dependents, provide a
separate statement with all the information required for claiming a dependent on the schedule.

State Elections Campaign Fund

If you want $5 to go to help candidates for state office pay campaign expenses, enter the code number for your chosen party. If you
choose the general campaign fund, the $5 will be distributed among candidates of all major parties listed. If you are filing a joint
return, your spouse may also designate a party. Designating $5 will not reduce your refund or increase your tax owed.

Important Tips
•
•
•
•

Round the dollar amounts to the nearest dollar. For example: 129.49 becomes 129, and 129.50 becomes 130.
Leave lines and unused boxes blank if they do not apply to you or if the amount is zero.
If your federal taxable income on line D, or the amounts on lines 1, 3, or 13b are less than zero, enter as a negative number.
Do not write extra numbers, symbols, or notes on your return, such as cents, dashes, decimal points, or dollar signs. Do not put a
slash through the “0” (Ø) or “7” (7) or any other numbers.
• Enclose any explanations on a separate sheet unless you are instructed to write them on your return.
• Do not staple or tape any enclosures to your return. If you want to ensure your papers stay together, use a paperclip.

Sign and Date Your Return

An unsigned paper return is not considered valid. If you are married and filing a joint return, both spouses must sign. You may be
subject to interest and penalties if you do not sign. If you paid someone to prepare your return, that person must also sign and provide
their federal Preparer Tax Identification Number (PTIN).
9

Filing Instructions
When do I file and pay?

Your 2023 Minnesota income tax return should be electronically filed, postmarked, or dropped off by April 15, 2024. Your tax
payment is due in full by April 15, 2024, even if you file your return later. If you file your tax return according to a fiscal year, your tax
payment and return are due the 15th day of the fourth month after the end of your fiscal year.

How do I pay my tax if I file after April 15?

Estimate your total tax and pay the amount you owe electronically or by credit or debit card. If you pay by check, you must send your
tax payment with a completed voucher from our website. You may avoid a late payment penalty and interest by paying your tax by
April 18. To avoid a late filing penalty, file your return by October 15, 2024. See page 19 for payment options.

Do I have to file electronically?

No. If you do not want your preparer to file your return electronically, check the appropriate box at the bottom of the return.

Where do I file paper returns?

If you are filing a paper return, see page 8 of these instructions. If you do not follow the instructions on that page, your return and
refund will be delayed. Send your Minnesota income tax return, including all completed Minnesota schedules, and your federal return
and schedules in the printed envelope included in this booklet. If you do not have the printed envelope, mail your forms to:
Minnesota Department of Revenue
Mail Station 0010
600 N. Robert St.
St. Paul, MN 55146-0010

What do I include when I mail my return?

Include your Form M1, all the Minnesota schedules you are required to complete, and a complete copy of your 2023 federal return and
all schedules. If you do not enclose the required documentation, we may send your return back to you.
Make copies of all your forms and schedules. Keep tax returns, worksheets, and records of all items appearing on the return (such as
Forms W-2 and 1099) until the statute of limitations runs out for the return. If you claimed the Child and Dependent Care Credit, the
K-12 Education Credit or Subtraction, or Minnesota itemized deductions, keep your original receipts and all other documentation to
prove your qualifying expenses.

How do I avoid common errors?
•
•
•
•
•

Enter your name and your dependents’ names as they appear on Social Security cards.
Double check Social Security Numbers used on tax forms.
Double check bank routing and account numbers used on tax forms.
Complete each form and carry totals to the correct lines. If you electronically file, the calculations are done for you.
File your return by April 15, 2024, even if you owe more than you can pay. Pay as much as you can by the due date, and continue
to make payments until we contact you. At that point, we can help you set up a payment plan for the remaining balance.
• If you owe, make your payment electronically and pick when you want the payment submitted. For more information about making your payment electronically, visit our website.
• If you are paper filing with a new address, be sure to place an X in the New Address box in the header. If you move after filing,
contact us right away. You should do this even when requesting a direct deposit.
• Do not staple or tape anything to your return. Use a paperclip.

How is my information used?

The information you provide on your tax return is private under state law. We use this information to determine your liability under
Minnesota tax laws and for other tax administration purposes. We cannot give this information to others without your consent,
except certain other government entities may have access to this information, if allowed by law. For details about how we use your
information, including a list of the entities we may share it with, go to www.revenue.state.mn.us and enter Use of Information into
the Search box.
10

Line Instructions
Federal Return Information

Line A—Federal Wages, Salaries, Tips, etc.

Reminders

• If a line does not apply to you or the amount is zero, leave it blank
• Round dollar amounts to the nearest whole dollar
• Include any schedules you use to complete your return when you file

Enter wages, salaries, tips, commissions, bonuses, etc. you received in 2023. If you filed federal Form 1040, enter the amount from:
• Line 1z of Form 1040 and 1040-SR
• Line 1 of Form 1040-NR

Line B—Taxable IRA Distributions, Pensions, and Annuities

Enter the total taxable IRA distributions, pensions, and annuities you received in 2023. Add the amounts on:
• Lines 4b and 5b of Form 1040, 1040-SR, or 1040-NR

Line C—Unemployment Compensation

Enter the unemployment compensation you received in 2023 from:
• Line 7 of Schedule 1 if you filed Form 1040, 1040-SR, or 1040-NR

Line D—Federal Taxable Income

Enter your 2023 federal taxable income from:
• Line 15 of Form 1040, 1040-SR, or 1040-NR
If your federal taxable income is less than zero, enter as a negative number.

Minnesota Income

Line 1—Federal Adjusted Gross Income

Enter your 2023 federal adjusted gross income from:
• Line 11 of Form 1040 or 1040-SR, or 1040-NR
If your federal adjusted gross income is less than zero, enter as a negative number.
If you did not file a 2023 federal return, use a federal return and instructions to determine what your federal adjusted gross income would
have been.
If you were a shareholder or partner in a pass-through entity that claimed a deduction for state income taxes which reduced your federal
adjusted gross income, you must complete the Adjusted Gross Income Worksheet for PTE Deductions. You will use the result on step 3 of
the worksheet on the lines and steps of the schedules and worksheets listed.

Adjusted Gross Income Worksheet for PTE Deductions

1 Adjusted gross income from Line 1 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Your share of pass-through entity taxes deducted by your partnership or s-corporation.
For entities who file in Minnesota this is included on Line 2 of Schedule KPI and KS. . . . . . . . . . . . . . . . .
3 Add steps 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Use the result from step 3 on the following lines of other schedules:
• Line 5 of Schedule M1CD
• Line 1 of Schedule M1ED
• Line 1 of Schedule M1CWFC
• Lines 2 and 21 of Schedule M1SA
• Lines 15 through 17 of Schedule M1SA when determining limits for charitable contributions
• Line 18 of Schedule M1CAT
• Line 9 of Schedule M1R
• Line 2 of Schedule M1SLC

• Lines 1 and 2 of Schedule M1CR
• Lines 1 and 2 of Schedule M1RCR

Use the result from step 3 on the following worksheets:
• Form M1 - Step 1 of Worksheet A for line 4 -Standard Deduction Limitation
• Form M1 - Step 4 of the Worksheet for line 5 - Dependent Exemptions
• Schedule M1SA - Step 5 of the Worksheet for line 26
• Schedule M1529 - Step 3 of the Worksheet for line 5
• Schedule M1C – Step 2 of the Worksheet for Line 4
• Schedule M1M – Step 1 of the Worksheet for line 12
• Schedule M1M – Step 9 of the Worksheet for line 12 (increase taxable income by step 2 of this worksheet)

11

Line Instructions (cont.)
Line 2—Additions to income from line 10 of Schedule M1M and line 9 of Schedule M1MB

Complete Schedule M1M, Income Additions and Subtractions or Schedule M1MB, Business Income Additions and Subtractions, if,
in 2023, you:
• Received interest from municipal bonds of another state or its governmental units
• Received federally tax-exempt interest dividends from a mutual fund investing in bonds of another state or its local governmental
units
• Claimed federal bonus depreciation on your federal return
• Had state income tax passed through to you as partner of a partnership, shareholder of an S corporation, or beneficiary of a trust
• Deducted expenses or interest on your federal Form 1040 that are attributable to income not taxed by Minnesota
• Deducted foreign-derived intangible income under section 250 of the Internal Revenue Code
• Claimed a suspended loss from 2001 through 2005 or 2008 through 2022 from bonus depreciation on your federal return
• Received a capital gain from a lump-sum distribution from a qualified retirement plan
• Elected in 2008 or 2009 a 3-, 4-, or 5-year net operating loss carryback under the federal Worker, Homeownership, and Business
Assistance Act (WHBA) of 2009
• Withdrew funds from a first-time homebuyer savings account for a nonqualified expense
• Accelerated recognition of certain nonresident installment sales
• Used distributions from a higher education savings account to pay for K-12 tuition
You may have received this income as an individual, partner of a partnership, shareholder of an S corporation, or beneficiary of a
trust.

Minnesota Subtractions

Line 4— Itemized Deductions or Standard Deductions

You may claim the Minnesota standard deduction or itemize your deductions on your Minnesota return. You will generally pay less
Minnesota income tax if you take the larger of your itemized or standard deduction. If you are married and filing separate returns,
you may not claim the standard deduction if your spouse claimed itemized deductions. If you are a nonresident alien, you may only
claim itemized deductions, unless you are a allowed to claim the standard deduction if allowed by a U.S. income tax treaty.

Itemized Deductions

Complete and file Schedule M1SA, Minnesota Itemized Deductions to claim itemized deductions.

Standard Deduction

Use the table on the next page to determine your Minnesota standard deduction. You are considered age 65 or older if you were born
before January 2, 1959. You are considered blind if you were totally blind as of December 31, 2023, or you have a statement certified
by your eye doctor (ophthalmologist or optometrist) that you cannot see better than 20/200 in your better eye with glasses or contact
lenses, or your field of vision is 20 degrees or less. If your eye condition is not likely to improve beyond the conditions above, you
can get a statement certified by your eye doctor to this effect instead. Keep the statement for your records.

12

Line Instructions (cont.)
Standard Deduction Table for Line 4

Check the boxes that apply to you and your spouse. If you are a dependent, see the Worksheet for Line 4 — Dependent Standard Deduction.
If you are married and filing a separate return, check boxes for your status only, unless your spouse has no gross income and cannot be claimed
as a dependent by another person.
You:

65 or older

blind

Your Spouse:

65 or older

If your filing status is:
Single
Married filing joint

Qualified surviving spouse
Married filing separately

Head of Household

blind

And the number of boxes you checked is:

0
1
2
0
1
2
3
4
0
1
2
0
1
2
3
4
0
1
2
Not allowed

Enter on line 4
$ 13,825
15,675
17,525
27,650
29,100
30,550
32,000
33,450
27,650
29,100
30,550
13,825
15,275
16,725
18,175
19,625
20,800
22,650
24,500
See note*

Married filing separately, if your spouse claims itemized deductions,
and nonresident aliens:
*If you are married and filing separate returns, you may not claim the standard deduction if your spouse itemizes deductions.
If you are a nonresident alien, you may claim the standard deduction only if allowed by U.S. income tax treaty.

Your standard deduction cannot exceed the standard deduction for your filing status and situation. If your Minnesota adjusted gross
income on line 1 of Form M1 is greater than $220,650 ($110,325 if Married Filing Separately), you must complete Worksheet A for
Line 4 or Worksheet B for Line 4. Use your standard deduction amount from the Standard Deduction Table for Line 4 or step 6 of the
Worksheet for Line 4 — Dependent Standard Deduction to complete Worksheet A or B.
Dependents: If another person may claim you as a dependent on their return, your standard deduction is based on your earned income.
Use the Worksheet for Line 4 — Dependent Standard Deduction to determine your standard deduction.

Worksheet for Line 4 — Dependent Standard Deduction

Use this worksheet to determine your standard deduction only if someone can claim you, or your spouse if filing a joint return, as a dependent.
1 Is your earned income* more than $850?
Yes. Add $350 to your earned income and enter on step 1
No. Enter $1,200 on step 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Enter $13,825 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Check the boxes that apply and enter the total number of boxes checked on step 3
You were born before January 2, 1959
You are blind
Your spouse was born before January 2, 1959
Your spouse is blind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Multiply the number of boxes checked in Step 3 by $1,850 ($1,450 if married and filing a joint return) . . .
5 Add Steps 2 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Enter the lesser of Step 1 and Step 5. This is your standard deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It
also includes any taxable scholarship or fellowship grant. Generally, your earned income is the total of the amounts reported on Form 1040 or
1040-SR, line 1z, and Schedule 1, lines 3, 6, 8r, 8t, and 8u minus the amount, if any, on Schedule 1, line 15.

13

Line Instructions (cont.)
Worksheet A for Line 4 - Standard Deduction Limitation

If your adjusted gross income is less than $220,650 ($110,325 if married filing separately), do not complete this worksheet. If your adjusted
gross income is greater than $1,000,000 (regardless of filing status), complete Worksheet B for Line 4 - Standard Deduction Limitation.
1 Adjusted gross income from line 1 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 If step 1 is greater than $304,970, enter $84,320. If it is less than or equal to $304,970, then subtract
$220,650 from step 1. If Married filing separately, and step 1 is greater than $152,485, enter $42,160.
If it is less than or equal to $152,485, subtract $110,325 from step 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Multiply step 2 by 3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 If step 1 is greater than $304,970, subtract $304,970 from step 1. If married filing separately and
step 1 is greater than $152,485, subtract $152,485 from step 1. Otherwise, enter 0. . . . . . . . . . . . . . . . . . . .
5 Multiply step 4 by 10% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 Add steps 3 and 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Enter your standard deduction from the standard deduction table or Step 6 of the
Worksheet for Line 4 – Dependent Standard Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Multiply step 7 by 80% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Enter the lesser of step 6 or step 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Subtract step 9 from step 7. This is your standard deduction. Enter this amount on line 4. . . . . . . . . . . . . .

Worksheet B for Line 4 - Standard Deduction Limitation

If your adjusted gross income is greater than $1,000,000, complete this worksheet.
1 Enter your standard deduction from the standard deduction table
or Step 6 of the Worksheet for Line 4 – Dependent Standard Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 Multiply step 1 by 80% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Subtract step 2 from step 1. This is your standard deduction. Enter this amount on line 4. . . . . . . . . . . . . . .

Line 5—Exemptions

You may claim exemptions for dependents on line 5. Use the Worksheet for Line 5 to determine your total exemption amount. If you can
be claimed as a dependent on another individual’s return, do not complete the Worksheet for Line 5 and leave line 5 of Form M1 blank.

Worksheet for Line 5 — Dependent Exemptions
1
2
3
4
5

Enter the number of dependents you claimed on Schedule M1DQC.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter $4,800. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiply step 1 by step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount from line 1 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the amount that matches your filing status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married Filing Jointly or Surviving Spouse: $330,950 Single:
$220,650
Head of Household:
$275,800 Married Filing Separately: $165,475
6 Compare the amounts on steps 4 and 5. If step 5 is more than step 4, enter the amount from step 3 on
line 5 of Form M1 and STOP HERE. If step 4 is more than step 5, subtract step 5 from step 4 . . . . . . . . . .
7 If step 6 is more than $122,500 ($61,250 for Married Filing Separately), enter 0 on line 5 of Form M1
and STOP HERE. If step 6 is less than or equal to $122,500 ($61,250 for Married Filing Separately),
divide step 6 by $2,500 ($1,250 if Married Filing Separately) and round up to the
next whole number (Example: .0004 to 1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Multiply step 7 by 2% (.02). Enter the result as a decimal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Multiply step 3 by step 8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Subtract step 9 from step 3. Enter the result on line 5 of Form M1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$4,800

Line 6—State Income Tax Refund

Enter any state income tax refund amounts included as income on line 1 of federal Schedule 1.

14

Line Instructions (cont.)
Line 7—Subtractions from line 35 of Schedule M1M and line 21 of Schedule M1MB

Complete Schedule M1M, Income Additions and Subtractions, if any of these apply. If, in 2023, you:
• Received mileage reimbursement in service of a charitable organization
• Received interest from a federal government source
• Were a licensed cannabis business who incurred or paid expenses disallowed under section 280E of the Internal Revenue Code
• Purchased educational material or services for your qualifying child’s K–12 education
• Did not file Schedule M1SA and your charitable contributions were more than $500
• Reported bonus depreciation as an addition to income in a year 2018 through 2022 or received a federal bonus depreciation subtraction in 2023 from an estate or trust
• Reported federal section 179 expensing as an addition to income in a year 2018 through 2019
• Had a business interest deduction disallowed
• Had a carryback of a net operating loss disallowed or an excess business loss from tax years 2018 through 2022 on your Minnesota return
• Were born before January 2, 1959, or are permanently and totally disabled and you received federally taxable disability income, and
you qualify to complete Schedule M1R under the limits below.

•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
15

If you are:

And your
income* is
less than:

And your Railroad Ret. Board
benefits and nontaxable
Social Security are less than:

Filing Single, Head of Household, or Qualifying Surviving Spouse and are 65 or older or
disabled

$33,700

$ 9,600

Married, filing a joint return, and both spouses are 65 or older or disabled

$42,000

$12,000

Married, filing a joint return, and one spouse is 65 or older or disabled

$38,500

$12,000

Married, filing a separate return, lived apart from your spouse for all of 2023, and are 65
or older or disabled

$21,000

$ 6,000

* Your income for claiming this subtraction is the amount from line 1 of Form M1 plus any lump-sum distributions reported on federal Form
4972, less any taxable Railroad Retirement Board benefits (see instructions for line 9 of Schedule M1R).

Received benefits from the Railroad Retirement Board, such as unemployment, sick pay, or retirement benefits
Were a resident of Michigan or North Dakota and you received wages covered by reciprocity from which Minnesota
income tax was withheld (see page 7)
Worked and lived on the Indian reservation of which you are an enrolled member
Received federal active-duty military pay while a Minnesota resident
Are a member of the Minnesota National Guard or Reserves who received pay for training or certain types of active service
Received active-duty military pay while a resident of another state and you are required to file a Minnesota return
You, your spouse (if filing a joint return), or your dependent donated all or part of a liver, pancreas, kidney, intestine, lung, or bone
marrow (while living) to another person
Received a military pension or other military retirement pay
Were insolvent and received a gain from the sale of your farm property that is included in line 11 of federal Form 1040
Received a post service education award for service in an AmeriCorps National Service program
Had a net operating loss from 2008 or 2009 under the Worker, Homeownership, and Business Assistance Act of 2009 and are
claiming the Minnesota subtraction you are carrying forward for Minnesota purposes
Had railroad maintenance expenses not allowed as a federal deduction
Contributed to a qualified Section 529 Plan and did not claim a credit for these contributions (see Schedule M1529)
Received Social Security benefits in 2023 and included some of those benefits on line 6b of federal Form 1040 or 1040-SR
Received taxable qualified retirement benefits for services for which you did not earn Social Security benefits
You received damages under a sexual harassment or abuse claim
You received income from a long-term service and support or nursing facility workforce incentive grant
Earned interest or dividends on a designated first-time homebuyer savings account (see Schedule M1HOME)
Reported a discharge of indebtedness of educational loans on completion of an income-driven repayment program
Had income from the sale of partnership interest after claiming accelerated recognition in a prior year
Recognized deferred foreign income under section 965 of the Internal Revenue Code

Line Instructions (cont.)
Tax Before Credits

Line 10—Tax From Table

Turn to the tax table on pages 24 through 30. Using the amount on line 9, find the tax amount in the column under your filing status.
Enter the amount of tax from the table on line 10.

Line 11—Alternative Minimum Tax (Schedule M1MT)

If you had to pay federal alternative minimum tax when you filed your federal Form 1040, 1040-SR, or 1040-NR, you must complete
Schedule M1MT, Alternative Minimum Tax, to determine if you must pay Minnesota alternative minimum tax.
You may be required to pay Minnesota alternative minimum tax even if you were not subject to federal alternative minimum tax.
Before you complete Schedule M1MT, you must complete Part 1 of federal Form 6251 for Minnesota purposes.

Line 13 —Part-Year Residents and Nonresidents (Schedule M1NR)

Your tax is determined by the percentage of your income that is assignable to Minnesota. Complete Schedule M1NR, Nonresidents/
Part-Year Residents, to determine your Minnesota tax. See page 6 to determine if you were a resident, part-year resident, or nonresident.
If you complete Schedule M1NR, enter the amounts from lines 28 and 29 of Schedule M1NR on lines 13a and 13b of your Form M1.
Include Schedule M1NR when you file Form M1.

Line 14— Other Minnesota Taxes

You may be required to pay an additional Minnesota tax if you:
• Withdrew funds from a first-time homebuyer savings account, and did not use the funds for qualified expenses
• Filed Schedule M1529, Education Savings Account Contribution Credit or Subtraction, in a prior tax year, and funds were withdrawn
from the account and not used for qualified expenses
• Received a qualified lump-sum distribution from a certain qualified plan and filed federal Form 4972
If you are required to pay one or more of these taxes, complete and file the applicable schedule or schedules.

First-Time Homebuyer Recapture Tax

Complete Schedule M1HOME, First-Time Homebuyer Savings Account, if you withdrew funds from a savings account designated as
a first-time homebuyer account and funds were not used for qualified expenses. Qualified expenses include the down payment, closing
costs, costs of construction, or financing the construction of a single-family residence.

Education Savings Account Credit or Subtraction Recapture Tax

File Schedule M1529, Education Savings Account Contribution Credit or Subtraction, to determine your recapture tax if:
• You filed Schedule M1529 claiming a credit or subtraction in a prior year
• Funds were withdrawn from that education savings account and not used for qualified expenses
See Schedule M1529 to determine which expenses do not qualify for Minnesota purposes.

Tax on Lump-Sum Distribution (Schedule M1LS)

You must file Schedule M1LS, Tax on Lump-Sum Distribution, if all of these apply:
• You received a lump-sum distribution from a pension, profit-sharing, or stock bonus plan in 2023
• You were a Minnesota resident when you received any portion of the lump-sum distribution
• You filed federal Form 4972
If you complete Schedule M1LS, include the schedule and Form 4972 when you file your Form M1.

Credits Against Tax

Line 16—Nonrefundable Credits (Schedule M1C)

Complete Schedule M1C, Other Nonrefundable Credits, if any of these apply for 2023:
• You are filing a joint return and have taxable earned income, pension, or Social Security income
• You paid premiums on a qualified long-term care insurance policy
• You were a Minnesota resident for all or part of 2023 and paid income tax to both Minnesota and another state on the same income
• You qualify for the Credit for Past Military Service
• You purchased transit passes to resell or give to your employees
• You paid Minnesota alternative minimum tax in prior years and are not required to pay it in 2023
• You invested in a qualified business in East Grand Forks, Breckenridge, Dilworth, Moorhead, or Ortonville, and the business has been
certified as qualified for the SEED Capital Investment Program
• You contributed to a qualified education savings account in 2023 and did not claim the Education Savings Account Subtraction
16

Line Instructions (cont.)
• You were a licensed teacher who completed a qualifying master’s degree program you began after June 30, 2017
• You were a full-year or part-year resident and made eligible loan payments on your own qualified student loans
• You received a credit certificate from the Minnesota Rural Finance Authority
• You received a Film Production Credit certificate from the Minnesota Department of Employment and Economic Development
• You sold a manufactured home park to a cooperative
• You had qualified railroad reconstruction or replacement expenditures
• You received a certificate from the Minnesota Housing Finance Agency for qualifying contributions to a state fund
Report the total of all credits from Schedule M1C on line 16 of Form M1. Include any schedules you completed when filing your return.

Line 18—Nongame Wildlife Fund

You can help preserve Minnesota’s nongame wildlife, such as bald eagles and loons, by donating to the Nongame Wildlife Fund. To
donate, enter the amount on line 18. This amount will decrease your refund or increase the amount you owe.
To make a contribution to the fund, go to www.dnr.state.mn.us/nongame/donate or send a check payable to:
DNR Nongame Wildlife Fund
500 Lafayette Road
Box 25
St. Paul, MN 55155

Total Payments

Line 20—Minnesota Income Tax Withheld (Schedule M1W)

If you received Forms W-2, 1099, or W-2G, or Schedules KPI, KS, or KF showing Minnesota income tax withheld for 2023, you must
complete Schedule M1W, Minnesota Income Tax Withheld. Include Schedule M1W when you file Form M1. If you do not include this
schedule, we may disallow your withholding amount. Do not send in your Forms W-2, 1099, or W-2G. Keep these forms with your
records, as we may ask to review them.
If you are claiming the Pass-Through Entity Tax Credit on Schedule M1REF, include your Minnesota schedule KPI, KS, or KF with your
return.

Line 21—Minnesota Estimated Tax and Extension Payments

You may include only three types of payments on line 21:
• Your total 2023 Minnesota estimated tax payments made in 2023 and 2024
• The portion of your 2022 Minnesota income tax refund designated on your 2022 Form M1 to be applied to 2023 estimated tax
• Any state income tax payment made by the regular due date when you are filing after the due date
Contact us if you are uncertain of these amounts.

Refundable Credits

These credits may help you get a refund even if you do not have a tax liability. Married persons filing separate returns generally cannot
claim these credits.

Line 22—Refundable Credits (Schedule M1REF)

Complete Schedule M1REF, Refundable Credits, if you qualify for any of these credits:
• Child and Dependent Care Credit
• Minnesota Child and Working Family Credits
• K-12 Education Credit
• Refundable Credit for Tax Paid to Wisconsin
• Credit for Parents of Stillborn Children
• Credit for Historic Structure Rehabilitation (Certified by the State Historic Preservation Office)
• Enterprise Zone Credit (Certified by the Department of Employment and Economic Development)
• Angel Investment Credit
• Pass-Through Entity Tax Credit
• Credit for claim of right
If you qualify for one or more of these credits, include the appropriate credit schedules and Schedule M1REF with your Form M1.

17

Line Instructions (cont.)
Child and Dependent Care Credit (Schedule M1CD)

To qualify for the Child and Dependent Care Credit, your federal adjusted gross income must be less than $71,210 with one qualifying
person or less than $83,210 with two or more qualifying persons. Also, at least one of these must apply:
• You paid someone (other than your dependent child or stepchild younger than age 19) to care for a qualifying person while you (and
your spouse if filing a joint return) were working or looking for work. A qualifying person and qualifying expenses are the same as for
the federal credit for child and dependent care expenses.
• You were a licensed family daycare operator caring for your own dependent child who had not reached age six by the end of the year.
• Your child was born in 2023, and you did not participate in a pre-tax dependent care assistance program.
If you qualify, complete Schedule M1CD, Child and Dependent Care Credit, and Schedule M1REF and include these schedules with
your Minnesota income tax return. Enter the number of qualifying persons on line 1a of Schedule M1REF.

Minnesota Child and Working Family Credits (Schedule M1CWFC)

You may qualify for the Minnesota Child and Working Family Credits if you earned income from a job, were self-employed or have
qualifying children. See the requirements on Schedule M1CWFC, Child and Working Family Credits. Use Schedule M1DQC to
determine who is a qualifying child or qualifying older child and Schedule M1CWFC to claim the credits. Part-year residents may
qualify for these credits based on their percentage of income taxable to Minnesota.
If you qualify for these credits, complete Schedule M1DQC, Schedule M1CWFC and Schedule M1REF and include these schedules with
your Form M1. Enter the number of your qualifying children for the Child Tax Credit on line 2a and qualifying older children on line 2b
of Schedule M1REF.

Credit for Parents of Stillborn Children (Schedule M1PSC)

You may qualify for the Credit for Parents of Stillborn Children if, in 2023:
• You experienced a stillbirth
• You received a Certificate of Birth Resulting in Stillbirth from the Minnesota Department of Health, Office of Vital Records
• The child would have been your dependent if the child had been born alive
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. The state file number is the number printed in the upper right area inside the margin of the Certificate
of Birth Resulting in Stillbirth. The document control number is the number printed in the lower left corner under the barcode on the
Certificate of Birth Resulting in Stillbirth. If you qualify for the credit, complete Schedule M1PSC, Credit for Parents of Stillborn
Children, and Schedule M1REF and include both with your Form M1.

Credit for Tax Paid to Wisconsin (Schedule M1RCR)

You may be eligible for a refundable credit for income tax paid to Wisconsin if:
• You were domiciled in Minnesota for all or part of 2023
• You incurred 2023 income tax for Minnesota and for Wisconsin on the same income earned for professional or personal services
performed while a Minnesota resident
Use Schedule M1RCR, Credit for Tax Paid to Wisconsin, and include it with your Form M1.

K–12 Education Credit (Schedule M1ED)

You may receive a credit if you paid education-related expenses in 2023 for a qualifying child in grades kindergarten through 12 (K–12).
To qualify, your adjusted gross income must be under the limit based on your number of qualifying children in grades K-12. A qualifying
child is the same as for the federal Earned Income Credit.
Total qualifying children

Your adjusted gross income limit is:

1 or 2

$76,000

3

$79,000

4

$82,000

5

$85,000

6 or more

$88,000 plus $3,000 for each additional qualifying child

If you qualify for the credit, complete Schedule M1ED, K-12 Education Credit, and Schedule M1REF and include them with your Form
M1.

18

Line Instructions (cont.)
If you have any of these expenses, include them on the lines indicated.

Credit Subtraction

Include only as a subtraction on line 13 of
Schedule M1M:

• Private school tuition
• Tuition for college courses used to satisfy high school graduation requirements

X

Include on line 2 of
Schedule M1ED or line
13 of Schedule M1M:

• Fees for after-school enrichment programs, such as science exploration and study habits
courses (by qualified instructor*)
• Tuition for summer camps primarily academic in focus, such as language or fine arts camps
• Instructor fees for driver’s education course if the school offers a class as part of the curriculum

X

X

X

X

X

X

Include on line 3 of
Schedule M1ED or line
13 of Schedule M1M:

• Tutoring*
• Music lessons*

X

X

X

X

Include on line 4 of
Schedule M1ED or line
13 of Schedule M1M:

Purchases of required educational material (textbooks, paper, pencils, notebooks, rulers, etc.) for
use during the regular public, private, or home school day

X

X

Include on line 5 of
Schedule M1ED or line
13 of Schedule M1M:

Purchase or rental of musical instruments used during the regular school day

X

X

Include on line 6 of
Schedule M1ED or line
13 of Schedule M1M:

Fees paid to others for transportation to and from school or field trips during the regular school
day, if the school is in Minnesota, Iowa, North Dakota, South Dakota, or Wisconsin

X

X

Include on line 7 of
Schedule M1ED or line
13 of Schedule M1M:

Home computer hardware and educational software
You may use up to $200 to qualify for the credit and another $200 for the subtraction.

X

X

X

*A qualified instructor is a person who is not the child’s sibling, parent, or grandparent, and meets one of these requirements:
• Is a Minnesota licensed teacher or is directly supervised by a Minnesota-licensed teacher
• Teaches in an accredited private school
• Has a baccalaureate (B.A.) degree
• Is a member of the Minnesota Music Teachers Association

Expenses That Do Not Qualify for Either the K-12 Education Credit or Subtraction
•
•
•
•
•
•
•
•
•
•

Costs to drive your child to and from school, tutoring, enrichment programs, or camps not part of the regular school day
Travel expenses, lodging, and meals