Minnesota Income Additions and Subtractions (onscreen version)

Income Additions and Subtractions (onscreen version)
2023 M1M, Income Additions and Subtractions
*231551*

2023 Schedule M1M, Income Additions and Subtractions
Complete	this	schedule	to	determine	line	2	and	line	7	of	Form	M1.

Your	First	Name	and	Initial	

	

Your	Last	Name	

	

	

Your	Social	Security	Number

Additions to Income

1 Interest from municipal bonds of another state or its governmental units
included on line 2a of federal Form 1040  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1
2	 Federally	tax-exempt	dividends	from	mutual	funds	investing	in	bonds	of	another	state	
or its governmental units included on line 2a of federal Form 1040  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 2
3	 Expenses	deducted	on	your	federal	return	attributable	to	income	not	taxed	
by Minnesota (other than interest or mutual fund dividends from U.S. bonds)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 3
4	 Capital	gain	portion	of	a	lump-sum	distribution	(from line 6 of federal Form 4972; enclose Form 4972)  .  .  . 4
5	 Addition	from	line	7	of	Schedule	M1HOME	(enclose Schedule M1HOME)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 5
6	 Distributions	from	higher	education	savings	accounts	used	for	K-12	tuition	(see instructions)  .  .  .  .  .  .  .  .  .  .  .  . 6
7	 This	line	intentionally	left	blank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 7
8	 This	line	intentionally	left	blank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 8
9	 This	line	intentionally	left	blank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9

10 Add lines 1 through 9 . Enter the total here and on line 2 of Form M1  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10

Subtractions from Income
	

11	 If	you	are	not	filing	Schedule	M1SA,	and	your	charitable	contributions	
	 were	more	than	$500,	see	instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

11

12	 Social	Security	benefit	subtraction	(determine from worksheet in instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 12
13	 Education	expenses	you	paid	for	your	qualifying	children	in	grades	K–12	(see instructions)
Enter the name and grade of each child on the line below  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13

14	 Net	interest	or	mutual	fund	dividends	from	U.S.	bonds	(see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
15	 Subtraction	for	contributions	to	a	qualified	education	savings	plan	(enclose Schedule M1529)  .  .  .  .  .  .  .  .  .  . 15
16	 Subtraction	for	persons	age	65	or	older,	or	permanently	and	totally	disabled	(enclose Schedule M1R)  .  .  . 16
17	 Railroad	Retirement	Board	benefits (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
18	 If	you	are	a	resident	of	Michigan	or	North	Dakota	filing	Form	M1	only	to	receive	a	refund	of	all	Minnesota
	 	 tax	withheld,	enter	the	amount	from	line	1	of	Form	M1.	If	the	amount	is	zero	or	less,	enter	0  .  .  .  .  .  .  .  .  .  . 18
• Place an X in one box to indicate the reciprocity state
of which you were a resident during 2023  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Michigan
	North	Dakota	 		
19	 Subtraction	of	reservation	income	for	American	Indians	(see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 19
20	 Federal	active-duty	military	pay	received	for	services	performed	while	a	Minnesota	
	 	 resident,	to	the	extent	the	income	is	federally	taxable.	If	you	received	a	military	pension,	see	line	25	 .  .  .  . 20
21 Minnesota National Guard members and reservists:	See	instructions	  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21

9995

2023 M1M, page 2
*231521*

	

22 Residents of another state:	Enter	your	federal	active	duty	military	pay,	to	the	extent	the	income	
	 is	federally	taxable.	If	you	received	a	military	pension,	see	line	25 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22
23	 Organ	donor	subtraction (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 23
24	 Volunteer	mileage	reimbursement	subtraction  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 24
25	 Subtraction	for	military	pensions	or	other	military	retirement	pay (see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 25
26	 Post-service	education	awards	received	for	service	in	an	AmeriCorps	National	Service	program	  .  .  .  .  .  .  .  . 26
27	 Subtraction	for	interest	earned	from	a	designated	first-time	homebuyer	savings	account	
(enclose Schedule M1HOME)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 27
28	 Subtraction	for	discharge	of	indebtedness	of	educational	loans	(see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 28
29	 Qualified	retirement	benefits	subtraction	(see instructions) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 29
30 Subtraction	for	damages	received	under	sexual	harassment	or	abuse	claims	(see instructions)  .  .  .  .  .  .  .  .  .

30

31	 Subtraction	for	long-term	service	and	support	workforce	incentive	grants	(see instructions)  .  .  .  .  .  .  .  .  .  .  .  . 31
32	 Subtraction	for	Nursing	Facility	Workforce	Incentive	Grants	(see instructions)  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 32
33	 Subtraction	for	one-time	refund	for	tax	year	2021 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 33
34	 This	line	intentionally	left	blank  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 34
35	 Add	lines	11	through	34.	Enter	the	total	here	and	on	line	7	of	Form	M1 .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 35

You must include this schedule with your Form M1.

9995

2023 Schedule M1M Instructions
Additions

Line 1 — Interest From Municipal Bonds of Another State or its Governmental Units

Of the amount you included (or should have included) on line 2a of federal Form 1040, add the interest you received from municipal bonds
issued by:
• A state other than Minnesota
• A local government (such as a county or city) in a state other than Minnesota

Line 2 — Federally Tax-Exempt Dividends from Mutual Funds Investing in Bonds of Another State

If you received federally tax-exempt interest dividends from a mutual fund, you may have to enter an amount on line 2. To determine the
amount, if any, use these instructions:
• If 95% or more of the federally tax-exempt dividends from a mutual fund came from bonds issued by Minnesota, include only the portion
of the federally tax-exempt dividend generated by non-Minnesota bonds
• If less than 95% of the federally tax-exempt interest dividends from a mutual fund came from bonds issued by Minnesota, include all of
the federally tax-exempt interest dividend from that fund

Line 3 — Expenses Relating to Income Not Taxed by Minnesota, Other Than From U.S. Bond Obligations

If you deducted expenses on your federal return connected with income not taxed by Minnesota (such as income reported on lines 17 through
22 of Schedule M1M), add those expenses to your taxable income.
Do not include expenses connected with interest or mutual fund dividends from U.S. bonds. For information on how to report these expenses,
see the instructions for line 14.

Line 4 — Capital Gain Portion of a Lump-Sum Distribution From a Qualified Retirement Plan

If you received a qualifying lump-sum distribution in 2023 and you chose the capital gain election on federal Form 4972, enter the capital
gain from line 6 of federal Form 4972. Include a copy of federal Form 4972 when you file your return.

Line 5 — First-Time Homebuyer Savings Account Addition

If you made a nonqualified withdrawal from a first-time homebuyer savings account, you may be required to include those amounts in your
taxable income. Complete and include Schedule M1HOME, First-Time Homebuyer Savings Account, to determine your addition.

Line 6 — Higher Education Savings Accounts Used for K-12 Tuition

If you paid K-12 tuition with a distribution from a higher education savings account, include one of these amounts, whichever is less:
• The total distributions from the account used to pay K-12 tuition
• The total earnings reported on federal Form 1099-Q for the year

Subtractions

Line 11 — Charitable Contributions over $500

You may subtract some of your contributions made during the year if both of these are true:
• You did not file Schedule M1SA, Minnesota Itemized Deductions
• You made charitable contributions of more than $500
To determine your allowable contributions, see the instructions for Schedule M1SA, and use the Worksheet for Line 11.

Worksheet for Line 11

To determine your allowable contributions, you will need the instructions for Schedule M1SA.
1	 Determine total allowable charitable contributions you would have been able to enter on lines 15 and 16 of Schedule M1SA . . . .
2	 The first $500 of contributions do not qualify  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3	 Subtract step 2 from step 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4	 Multiply step 3 by 50% (.50). Enter here and on line 11 of Schedule M1M  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

$500

Line 12 — Social Security Subtraction

If you had a taxable Social Security benefits on line 6b of Form 1040 or 1040-SR, you may be eligible to subtract those benefits from your
Minnesota taxable income. Enter the full amount from line 6b of Form 1040 or 1040-SR on line 12 of Schedule M1M, if your adjusted gross
income was below these amounts based on your filing status:
• Single or Head of Household: $78,000
• Married Filing Jointly or Qualifying Surviving Spouse: $100,000
• Married Filing Separately: $50,000
If your adjusted gross income is greater than these amounts, you must determine your subtraction using the Worksheet for Line 12. Your
subtraction equals the greater of step 8 (Simplified Method) or step 28 (Alternative Method).

Rev. 1/8/24

M1M-1

Continued

Worksheet for line 12

	 1	 Adjusted gross income from line 1 of Form M1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 2 	 Enter the amount based on your filing status  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married Filing Jointly or Qualifying Surviving Spouse

$100,000

Single or Head of Household

$78,000

Married Filing Separate

$50,000

	 3 	 Subtract step 2 from step 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 4 	 Divide step 3 by $4,000 ($2,000 if married and filing a separate return). Round up to nearest whole number.
		 If greater than ten, enter 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 5 	 Multiply step 4 by 10% (.1). Enter the result as a decimal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 6 	 Taxable Social Security benefits from line 6b of Form 1040 or 1040-SR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 7 	 Multiply step 5 by step 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 8 	 Subtract step 7 from step 6. If less than zero, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 9 	 Enter the amount from line 9 of Form 1040 or 1040-SR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 	 Taxable Social Security benefits from line 6b of Form 1040 or 1040-SR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	11 	 Subtract step 10 from step 9  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	12 	 Enter the amount from line 6a of federal Form 1040 or 1040-SR  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 	 Multiply step 12 by 50% (0.50) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 	 Enter the amount you included or should have included on line 2a of Form 1040 or 1040-SR . . . . . . . . . . . . . . . . . . . . . . . .
15 		 Add steps 11, 13, and 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 		 Enter the amount from line 26 of federal Schedule 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 		 Enter the amount from line 21 of federal Schedule 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 		 Subtract step 17 from step 16. If zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 		 Subtract step 18 from step 15. If zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20 		 Enter the amount based your filing status  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married Filing Jointly or Qualifying Surviving Spouse

$88,630

Single or Head of Household

$69,250

Married Filing Separate

$44,315

	

	

21 		 Subtract step 20 from step 19. If zero or less, enter 0  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 		 Multiply step 21 by 20%  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23 		 Enter the amount based on your filing status  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married Filing Jointly or Qualifying Surviving Spouse

$5,840

Single or Head of Household

$4,560

Married Filing Separate

$2,920

24 		 Subtract step 22 from 23. If zero or less, enter 0  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 		 Enter the amount from step 10  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 		 Enter the amount of Tier 1 railroad retirement benefits included on line 17 of Schedule M1M  . . . . . . . . . . . . . . . . . . . . . . .
27 		 Subtract step 26 from step 25. If zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
28 		 Enter step 24 or step 27, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 		 Subtract step 26 from step 8. If zero or less, enter 0.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30 		 Enter step 28 or 29, whichever is greater. Also, enter this amount on line 12 of Schedule M1M  . . . . . . . . . . . . . . . . . . . . . .

Line 13 — K-12 Education Expense Subtraction

If you purchased qualifying educational materials or services in 2023 for your qualifying child’s K–12 education, you may be able to reduce
your taxable income.
If you qualify for the K-12 Education Credit, complete Schedule M1ED, K-12 Education Credit, before entering an amount on this line (see
instructions for line 3 of Schedule M1REF, Refundable Credits). For this subtraction, you may use qualifying expenses you did not use for
the credit and tuition expenses which do not qualify for the credit. You may not claim both the credit and a subtraction for the same expenses.
Complete the Worksheet for Line 13 if you entered an amount on line 13 of Schedule M1ED.
To subtract your education expenses, the child must:
•	 Be your child, adopted child, stepchild, grandchild, or foster child who lived with you in the United States for more than half of the year
•	 Have been in grades K–12 during 2023
•	 Have attended a public, private, or home school in Minnesota, Iowa, North Dakota, South Dakota, or Wisconsin
•	 Not be claimed as a qualifying child on another individual’s return
Additionally, you must have purchased educational services or required materials during the year to help your child’s K–12 education. Education expenses that qualify for the credit also qualify for the subtraction, but certain expenses qualify only for the subtraction. For examples of
qualifying education expenses, see the instructions for Form M1, Individual Income Tax.

M1M-2

Continued

Subtraction Limits
The maximum subtraction allowed for purchases of personal computer hardware and educational software is $200 per family. You may split
qualifying computer expenses, up to $200, among your children any way you choose. The maximum amount of education expenses you can
subtract is $1,625 for each child in grades Kindergarten through 6, and $2,500 for each child in grades 7 through 12.
If you qualify for the K–12 Education Credit (Schedule M1REF, line 3) and you cannot use all your education expenses on Schedule M1ED,
complete the Worksheet for Line 13. For more information, see Income Tax Fact Sheet 8, K–12 Education Subtraction and Credit, for more
information.
Enter your qualifying education expenses on line 13. Also, enter each child’s name and grade at the time the expenses were paid.

Worksheet for Line 13

If you qualify for the K–12 Education Credit and you cannot use all of your education expenses on Schedule M1ED,
determine line 13 of Schedule M1M by completing these steps:
1	 Qualifying tuition expenses  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2	 Qualifying computer expenses, up to a maximum of $200  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Complete steps 3–6 if on Schedule M1ED line 12 is less than line 11.
3	 Line 10 of Schedule M1ED  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4	 Line 13 of Schedule M1ED  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5	 Multiply step 4 by 1.333  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6	 Subtract step 5 from step 3  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7	 Add steps 1, 2, and 6  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the result from step 7—up to the maximum subtraction amount per child—on line 13 of Schedule M1M.

Line 14 — Net Interest From U.S. Bonds

Include federally taxable interest you received from:
•	 U.S. bonds, bills, notes, savings bonds, and certificates of indebtedness
•	 Sallie Mae bonds
•	 Dividends paid to you by mutual funds that are attributable to these bonds
•	 U.S. Government interest and dividends you received as partner of a partnership, shareholder of an S corporation, or beneficiary of a trust
Reduce these amounts by any related investment interest and other expenses deducted on your federal return relating to this income. Do not
include interest or dividends attributable to Ginnie Mae, Fannie Mae, or Freddie Mac bonds. If you received interest from a government source
not listed, see Income Tax Fact Sheet 13, U.S. Government Interest.

Line 15 — Contributions to a 529 plan

You may be able to deduct certain contributions made to a 529 plan. To determine the amount of your subtraction, complete and include Schedule M1529, Education Savings Account Contribution Credit or Subtraction, and enter the amount from line 4 of Schedule M1529 on line 15.

Line 16 — Subtraction for Persons 65 or Older or Permanently and Totally Disabled (Schedule M1R)

You may qualify for a subtraction if either of these apply to you (or your spouse, if filing a joint return):
•	 You were born before January 2, 1959.
•	 You were permanently and totally disabled and received federally taxable disability income in 2023. If you did not receive federally taxable
disability income, you do not qualify for this subtraction.
If you (or your spouse, if filing jointly) meet the age or disability requirement, see the instructions for Form M1 to determine if you meet the
income requirements. If you meet all eligibility requirements, complete and include Schedule M1R, Age 65 or Older/Disabled Subtraction.

Line 17 — Railroad Retirement Board Benefits

If you included unemployment, sick pay, or retirement benefits from the Railroad Retirement Board in your 2023 federal adjusted gross income,
you can subtract these amounts.

Line 18 — Reciprocity Income

Minnesota has income tax reciprocity agreements with Michigan and North Dakota. Reciprocity applies only to personal service income, such
as wages, salaries, tips, commissions, fees, and bonuses. Complete line 18 if all of these apply:
•	 You are a resident of a reciprocity state.
•	 Your only Minnesota source income was wages covered under reciprocity.
•	 You had Minnesota income tax withheld from these wages, and want a refund of the amount withheld. Place an X in the box for the state of
which you were a permanent resident during the year, and enter the amount from line 1 of Form M1 on line 18 of Schedule M1M.
When you file Form M1, follow the steps in the Form M1 instructions. Also complete and include these forms:
•	 Schedule M1W, Minnesota Income Tax Withheld
•	 Form MWR, Reciprocity Exemption/Affidavit of Residency
•	 A copy of your home state tax return
To avoid having Minnesota tax withheld in the future on wages covered by reciprocity, file Form MWR each year with your employer.
When to complete Schedule M1NR: If your gross income assignable to Minnesota (other than from performing personal services covered
under reciprocity) is $13,825 or more, you are not eligible to take the reciprocity subtraction on line 18. Instead, file Form M1 and Schedule
M1NR. Do not include your personal service income on column B of Schedule M1NR.
Continued

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Line 19 — American Indians Living on an Indian Reservation

If you are a member of an American Indian tribe living and working on the reservation of which you are an enrolled member, enter your
reservation source income to the extent it is federally taxable.
If you are eligible to subtract reservation source income, you must apportion any Child and Dependent Care Credit you claim based on your
income taxable to Minnesota.

Line 20 — Federal Active-Duty Military Pay Received by Residents

If you are a Minnesota resident and a member of the United States armed forces or United Nations armed forces, enter the federal active-duty
military pay you received and included in your federal adjusted gross income.

Line 21 — National Guard Members and Reservists

Members of the Minnesota National Guard and Reserves are allowed a subtraction of federally taxable pay received for training and certain
types of qualifying service. This includes:
• 	Training, including annual training and drill weekends	
• 	State active service, including natural disaster emergency response and missing person searches
•	 Federally funded state active service such as airport security duty, Active Duty Operational Support (ADOS), and service under Title 10
and Title 32 Active Guard Reserve (AGR)
If you included income on line 20 for federal active-duty pay, do not include that income on line 21.

Line 23 — Organ Donor Subtraction

If, while living, you, your spouse (if filing jointly), or a dependent donated all or part of a liver, pancreas, kidney, intestine, lung, or bone marrow to another person, you may subtract your actual qualified expenses up to $10,000.
Qualified expenses are your unreimbursed expenses for travel and lodging and for any lost wages net of sick pay due to the transplantation.

Line 24 – Volunteer Mileage Reimbursement Subtraction

If you received mileage reimbursement in volunteer service for an organization eligible for a charitable contribution under Internal Revenue
Code, section 170(c), you may subtract the amount you received which exceeded the volunteer mileage rate of 14 cents per mile. You may
only subtract amounts included in federal adjusted gross income. There is a cap of 65.5 cents per mile for 2023. Complete the Worksheet for
Line 24 for each organization which reimbursed you for mileage greater than the volunteer mileage rate. Combine the result of step 6 for all
worksheets completed and enter the total on line 24. If each organization reimbursed you at the same rate, you may use one worksheet and
combine all reimbursements received on step 1 for miles driven in 2023.

Worksheet for Line 24

1 Reimbursements for miles driven in volunteer service that you received in 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
2 Number of volunteer miles related to reimbursements on step 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
3 Multiply step 2 by 14 cents  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
4 Multiply step 2 by 65.5 cents  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
5 Enter the lesser of step 1 or step 4  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
6 Subtract step 3 from step 5. Include this amount on line 24 of Schedule M1M  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

Line 25 — Military Pension or Retirement Pay

If you received certain compensation from a military pension or other military retirement pay, you may reduce your taxable income by that
pay. To qualify, your retirement pay must be taxable on your federal return and received for one of these:
•	 Service in the active component of the military (U.S. Code, title 10, sections 1401 to 1414)
•	 Retirement pay for service in the reserve component (U.S. Code, title 10, section 12733)
•	 Survivor benefit plan payments (U.S. Code, title 10, sections 1447 to 1455)
If you claim this subtraction, you may not claim the nonrefundable credit for past military service on line 1 of Schedule M1C, Other Nonrefundable Credits.
If you received Post-9/11 Veteran Service Bonus payment, enter the payment amount included in your federal adjusted gross income.

Line 26 — Post-Service Education Awards Received for Service in an AmeriCorps National Service Program

If you received a post-service education award, such as tuition reimbursements or student loan payments, from the federal government in
2023 for service in the AmeriCorps program, you may subtract the amount included in your federal adjusted gross income. Enter the amount
you received after leaving the program. Do not include the stipend received while working in the program.
If your education award was used to repay a student loan, and you deducted the student loan interest on line 21 of federal Schedule 1, you
must reduce your subtraction by the interest attributable to the award.

Line 27 — First-Time Homebuyers Savings Account

If you contributed to a designated first-time homebuyer savings account since 2017, you may be eligible to subtract your earnings on the account. Complete and include Schedule M1HOME, First-Time Homebuyer Savings Account, to determine your subtraction amount.

Line 28 — Discharge of Indebtedness for Education Loans

If your qualified education loan debt was discharge because you completed an income-driven repayment program, enter the amount of debt
discharged and included in federal adjusted gross income.

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Line 29 — Qualified Retirement Benefits Subtraction

If you received certain pension pay for public service, you may be able to reduce your taxable income. To qualify, your pension pay must be
taxable on your federal return and paid to you as a member (or for survivor benefits) under plans governed by:
•	 Chapter 353 (basic member of the Public Employees Retirement Association)
•	 Chapter 353, sections 353.63 to 353.666 (Public Employees Police and Fire plan)
•	 Chapter 353E (basic member of the Local Government Correctional Service Retirement Plan)
•	 Chapter 354 or 354A (basic member of the Teachers’ Retirement Association)
•	 Chapter 3A (basic member of the Legislators plan)
•	 Chapter 352B (State agency law enforcement retirement fund)
•	 Any federal government plan based on service for which no Social Security benefits were earned
•	 A plan created by another state or its political subdivisions or District of Columbia, if the other state allows a similar or reciprocal subtraction or exemption for the plans mentioned above
Note: You cannot receive this subtraction for pension payments based on service for which you also earned credit toward Social Security
benefits and are therefore eligible to receive Social Security benefits based on the same service.
If your adjusted gross income is greater than these amounts based on your filing status, you do not qualify for this subtraction, and you need
not complete the Worksheet for Line 29:
•	 Married Filing Jointly or Qualifying Surviving Spouse - $118,000
•	 Single or Head of Household - $96,000
•	 Married Filing Separately - $68,000

Worksheet for Line 29

	 1	 Enter your total qualified public service-related pension payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	 2	 Enter $12,500 ($25,000 if Married Filing Jointly or Qualifying Surviving Spouse)  . . . . . . . . . . . . . . . . . . . . . . . . . . . 

	 3	 Enter the lesser of step 1 or step 2  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 4	 Adjusted gross income from line 1 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
	 5	 Enter the amount for your filing status:  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
		Married Filing Jointly or Qualifying Surviving Spouse: $100,000
		 Single or Head of Household: $78,000
		 Married Filing Separately: $50,000
	 If step 4 is less than or equal to step 5, stop here and enter the amount from step 3 on line 29.
	 6	 Subtract step 5 from step 4. If the result is zero or less, enter 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	 7 	 Divide step 6 by 2,000. Round up to the nearest whole number  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	 8 	 Multiply step 7 by 10% (.1). Enter the result as a decimal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	 9 	 Multiply step 8 by step 3  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
10 	 Subtract step 9 from step 3 and enter the result on line 29. If zero or less, you do not qualify for a subtraction  . . . . . 

Line 30 — Subtraction for damages received under sexual harassment or abuse claims

Enter the amount of damages received under a sexual harassment or abuse claim related to personal physical injuries or physical sickness and
included in federal adjusted gross income.

Line 31 – Subtraction for Long-term Service Support Workforce Incentive Grants

Enter the amount you received from the Long-term Service and Support Workforce Incentive Grant program during 2023 that was included in
your adjusted gross income on line 1 of Form M1. The maximum an employee received under this program is $1,000.

Line 32 – Subtraction for Nursing Facility Workforce Incentive Grants

Enter the amount you received from the Nursing Facility Workforce Incentive Grant program that was included in your adjusted gross income
on line 1 of Form M1. The maximum an employee received under this program is $3,000.

Line 33 – Subtraction for one-time refund for tax year 2021

If you received a direct tax rebate payment for the one-time refund for tax year 2021, include the amount you received on line 33. You must
have included the payment in federal adjusted gross income to subtract it on line 33.

M1M-5