Military tax information

The Minnesota Department of Revenue reminds the state?s military service members to claim a refundable military tax credit before it expires. Over 3,380 service members were eligible for the 2019 Credit for Military Service in a Combat Zone (Form M99), but about 1,500 service members still have not claimed it.

The 2019 credit will expire October 15, 2023, for qualifying service members.

Who qualifies for the credit?

Service members may qualify if they:

  • Were a Minnesota resident during the time of service
  • Served in a combat zone or qualified hazardous duty area during 2019
  • Received combat pay that is exempt from federal and Minnesota income tax

The IRS has online information about combat zone locations approved for tax benefits.

The credit is $120 per month or partial month served.

Note: Kuwait is considered a combat zone for this credit.

How do service members claim the credit?

They may either:

When filing, be sure to include these required documents:

  • Active-duty members: Attach a Leave and Earnings Statement for each month of qualifying service.
  • National Guard member, reservist, or retired or discharged active-duty member: Attach a Form DD-214 for each period of qualifying service.

Is the credit available for other years?

Service members may claim this credit for tax years 2020, 2021, and 2022 if they qualify. File Form M99 for the appropriate year and include the required documents.

Questions?

Visit our website to learn more about the Credit for Military Service in a Combat Zone and other Minnesota tax benefits for military members.

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