Military tax information

The Minnesota Department of Revenue reminds the state?s military service members to claim the 2020 Credit for Military Service in a Combat Zone before it expires October 15, 2024.

The credit is $120 for each month of service. Partial months are counted as full months.

Who qualifies for the credit?

Service members may qualify if all these are true:

  • Were a Minnesota resident during the time of service
  • Served in a combat zone or qualified hazardous duty area during 2020
  • Received combat pay that is exempt from federal and Minnesota income tax

The IRS has information about Combat Zone Locations Approved for Tax Benefits.

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

How do service members claim the credit?

They can either:

These documents are required for filing:

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

Is the credit available for other years?

Yes. Qualifying service members can claim this credit for tax years 2021 through 2024. They no longer need to wait to claim the credit. They can now file and claim it any time during the calendar year.

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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