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Military Tax Tips

July 27, 2019



Hi, I'm Pong Xiong with the Minnesota Department
of Revenue and I'm also a Marine Corp Veteran. Did you know U.S. military members and veterans
may be eligible for special tax benefits? These benefits could help reduce your overall
income and property tax liability, which may save you money. It's one of the ways we honor the service
of military members who call Minnesota home. Beginning with tax year 2016, if you received
certain types of military pensions or other retirement pay, you may be eligible for a
Minnesota income tax subtraction. To qualify, the retirement pay must be taxable
on the federal return and computed under Title 10. If you claim this subtraction, you may not
claim the nonrefundable credit for past military service. If you are a veteran of the U.S. military,
including the National Guard and Reserves, you may qualify for the “Credit for Past
Military Service.” It is a tax credit of up to $750 for your
past service. That's a dollar-for-dollar reduction of any
tax amount owed. If you've served in a combat zone or qualified
hazardous duty area, you may qualify for a credit for your service equal to $120 per
month or partial-months served. This credit is filed separately from your
income tax return on Form M99. And as a member of the U.S. military, you
may get an automatic extension if you cannot file or pay your Minnesota income tax by the
due date. The exact extension rules depend on your duty
status and where you're stationed. If you are an honorably discharged veteran
who has a service-connected disability rating of 70 percent or more, or surviving spouse
or approved primary family caregiver of certain qualifying veterans, you may be eligible for
reduced property taxes on your homestead. Applications for these benefits must be filed
with the county assessor. To learn how to apply for these tax benefits
and to see if you qualify, go to revenue.state.mn.us and click on "Members of the Military." Thank you for your service.

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