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- What is the difference between 1040, 1040A or 1040EZ?
- What is a 1099 form?
- Federal income tax brackets
- The ultimate state and federal tax submission faq
- What Are the Top 10 Tax Questions in the US?
- Am I Eligible for the Child Tax Credit?
- Glossary of frequently used tax terms from eSmart Tax
- What is State tax filing and why is it necessary?
- Freelancer Guide to Self-Employment Taxes Infographic
- Filing Taxes Late
Minnesota Form M1 - Individual Income Tax Return Instructions
You must file a Minnesota Form M1, Individual Income Tax Return, if you are a:
- Minnesota resident required to file a federal income tax return, or
- part-year resident or nonresident of Minnesota and you have Minnesota gross income of $9,350 or more.
Filing requirements and residency
If you were a resident of Minnesota for the entire year and are required to file a 2010 federal income tax return, you must also file a 2010 Minnesota Form M1.
If you are not required to file a federal return, you are not required to file a Minnesota return. However, you must file a Minnesota return in order to:
- claim refundable credits for which you may qualify (the K - 12 education, working family or child care credits, etc.), or
- receive a refund if your employer withheld Minnesota income tax from your wages in 2010.
Did you move into or out of Minnesota during the year?
If you moved into or out of Minnesota in 2010, you must file Form M1 if you meet the filing requirements for part-year residents.
When you file, also complete Schedule M1NR, Nonresidents/Part-Year Residents, to determine income received while a Minnesota resident and income received from sources in Minnesota while a nonresident. Your Minnesota tax is based on that income.
If you considered Minnesota your permanent home in 2010, or for an indefinite period of time, you were a resident for 2010.
For more information, see Income Tax Fact Sheet #1, Residency.
Were you a resident of another state and lived in Minnesota?
If you were a resident of another state, you may be required to file Form M1 as a Minnesota resident if both of these conditions applied to you:
- ou were in Minnesota for 183 days or more during the tax year, and
- you or your spouse owned, rented or leased a house, townhouse, condominium, apartment, mobile home or cabin with cooking and bathing facilities in Minnesota, and it could be lived in year-round.
If both conditions apply, you are considered a Minnesota resident for the length of time the second condition applies. If the second condition applied for the entire year, you are considered a full-year Minnesota resident for income tax purposes. If it applied for less than the full year, you are considered a part- year resident, and you must file Form M1 if you meet the filing requirements explained in the next section.
If you were a resident of another state, but the conditions did not apply to you in 2010, you were a nonresident of Minnesota for income tax purposes. However, you must file Form M1 if you meet the filing requirements in the next section.
For further details, see Income Tax Fact Sheet #2, Part-Year Residents, and Fact Sheet #3, Nonresidents.
Filing requirements for part-year residents and nonresidents
- Determine your total income from all sources (including sources not in Minnesota) while a Minnesota resident.
- Determine the total of the following types of income you received while a nonresident of Minnesota:
- wages, salaries, fees, commissions, tips or 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
- gains from the sale of a partnership interest, to the extent the partnership had property or sales in Minnesota
- gain 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 partly or entirely in Minnesota (Gross income is income before any deductions or expenses). This is the amount from line 7 of federal Schedule C, line 1 of Schedule C-EZ or line 11 of Schedule F of Form 1040. Gross income from a partnership or S corporation is the amount on line 22 of Schedule KPI or line 22 of Schedule KS.)
- gross winnings from gambling in Minnesota
- Add step 1 and step 2. If the total is $9,350 or more, you must file Form M1 and Schedule M1NR.
If the result is less than $9,350 and you had amounts withheld or paid estimated tax, you must file Form M1 and Schedule M1NR to receive a refund.
If only one spouse is required to file a Minnesota return and you filed a joint federal return, you must file a joint Form M1. Complete Schedule M1NR and include a copy of the schedule when you file your return.
Information for your federal return
State refund information - Form 1040, line 10
The Department of Revenue does not mail Form 1099-G, Record of Income Tax Refund, to taxpayers.
If you received a state income tax refund in 2010 and you itemized deductions on federal Form 1040 in the year you paid the tax, you may need to report an amount on line 10 of your 2010 Form 1040. See the 1040 instructions for more information.
To determine the Minnesota income tax refund you received:
- go to www.taxes.state.mn.us, or
- call our automated phone system at 651-296-4444 or 1-800-657-3676, or
- review your records.
Deducting vehicle license fees - Schedule A, line 8
If you itemize on your 2010 federal return, only a portion of your Minnesota vehicle license fee is deductible as personal property tax on line 8 of federal Schedule A of Form 1040. The deduction is allowed only for passenger automobiles, pickup trucks and vans.
To determine line 8 of Schedule A (1040), you must subtract $35 from your vehicle’s registration tax.
To find the registration tax:
- go to www.mndriveinfo.org and click on “Tax Info,” or
- look at the vehicle registration renewal form issued by Driver & Vehicle Services.
If you own more than one vehicle, subtract $35 from the registration tax shown for each vehicle.
Other amounts, such as the plate fee and filing fee, are not deductible and cannot be used as an itemized deduction.
Michigan and North Dakota residents
Note: The income tax reciprocity agreement between Minnesota and Wisconsin ended beginning with tax year 2010 (See page 3).
Minnesota has reciprocity agreements with Michigan and North Dakota. If both of the following conditions applied to you in 2010, you are not subject to Minnesota income tax:
- you were a full-year resident of Michigan or North Dakota who returned to your home state at least once a month, and
- your only Minnesota income was from the performance of personal services (wages, salaries, tips, commissions, bonuses).
For more information, see Income Tax Fact Sheet #4, Reciprocity.
If you are a resident of Michigan or North Dakota and your only Minnesota source income is wages covered under reciprocity from which Minnesota income tax was withheld, complete Schedule M1M to get a refund of the amount withheld.
When you file:
- Enter the appropriate amounts from your federal return on lines A - D and on line 1 of Form M1.
- Skip lines 2 through 7 of Form M1.
- Enter the amount from line 1 of Form M1 on line 24 of Schedule M1M and on line 8 of Form M1. Place an X in the box on line 24 of Schedule M1M to indicate the state of which you are a resident.
- Complete the rest of Form M1.
In addition to Schedule M1M, you must also complete and enclose Schedule M1W, Minnesota Income Tax Withheld, Form MWR, Reciprocity Exemption/Affidavit of Residency, 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 each year with your employer.
If you are filing a joint return and only one spouse works in Minnesota under a reciprocity agreement, you still must 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 the performance of personal services covered under reciprocity is $9,350 or more, you are subject to Minnesota tax on that income. You must file Form M1 and Schedule M1NR. You are not eligible to take the reciprocity subtraction on Schedule M1M.
Due date for filing and paying is April 18
Your 2010 Minnesota Form M1 must be postmarked by, brought to, or electronically filed with the Department of Revenue no later than April 18, 2011. If you file your tax return according to a fiscal year, you have until the 15th day of the fourth month after the end of your fiscal year to file your return.
Your tax payment is due in full by April 18, 2011, even if you file your return after the due date.
Members of the Armed Forces
If you are a Minnesota resident, you must file a Minnesota return as a resident, regardless of where you were stationed during the year. However, if your gross income included on your federal return, minus any compensation received for active duty performed outside Minnesota, is less than $9,350, you are not required to file a Minnesota return.
For more information, see Income Tax Fact Sheet #5, Military Personnel.
Military personnel who are part-year residents or nonresidents: When determining if you are required to file a Minnesota return using the steps on page 4, do not include:
- active duty military pay for service outside Minnesota in step 1, or
- active duty military pay for service in Minnesota in step 2.
Resident military spouses: If you are the spouse of an active duty military member who is stationed outside of Minnesota, any income you earned in the other state is assignable to Minnesota.
Nonresident military spouses: Nonresident military spouses may be exempt from Minnesota tax on personal service income performed in Minnesota if all of the following requirements were met:
- The servicemember was present in Minnesota in compliance with military orders,
- The servicemember was a resident or domiciled in a state other than Minnesota,
- The spouse was in Minnesota solely to be with the servicemember, and
- The spouse had the same state of residency or domicile as the servicemember.
Military extensions. Military personnel serving in, or in support of, presidentially declared combat zones are allowed the same extensions of time to file and pay their state income taxes as they are allowed for federal taxes. When you file Form M1, enclose a separate sheet stating you were serving in a combat zone.
Did you serve in a combat zone at any time during 2010?
If so, you are eligible for a credit of $120 for each month or part of a month you served in a combat zone or hazardous duty area and Minnesota was your home of record.
To claim the credit, complete Form M99, Credit for Military Service in a Combat Zone. To download this form, go to www.taxes.state.mn.us.
Paying your tax when filing your return after April 18
If you are unable to complete and file your return by the due date, you may avoid penalty and interest by paying your tax by April 18. Estimate your total tax and pay the amount you owe electronically, by check or by credit or debit card.
If you pay by check, you must send your tax payment with a completed Form M13, Income Tax Extension Payment, by April 18. Do not send in an incomplete Form M1.
To avoid a late filing penalty, you must file your return by October 15, 2011.
You can pay your tax electronically - even if you file a paper return - using the department’s e-File Minnesota system. There is no charge to you for using this service.
To pay electronically:
- go to www.taxes.state.mn.us, and click “Make a payment” from the e-Services menu, or
- call 1-800-570-3329 to pay by phone.
Follow the prompts for individuals to make a payment.
Note: When paying electronically, you must use an account not associated with any foreign banks.
You will be given a confirmation number and a date stamp when the transaction is successfully completed. Save this information with your tax records.
Pay by credit card
You may pay the amount you owe through Official Payments Corporation, a national credit card payment service. You will be charged a fee to use this service.
Have your Visa, MasterCard, American Express or Discover/Novus credit card ready, and go to www.officialpayments.com or call 1-800-2PAY-TAX (1-800-272-9829). When asked for the jurisdiction number, enter 3300. (All taxpayers paying current year Minnesota individual income tax must use this number.)
At the end of your call or website visit, you will be given a confirmation number. Write down and save this confirmation number with your records. Your payment will be effective on the date you made the request.
Pay by debit card
Go to the Official Payments website at www.officialpayments.com/debit or call 1-866-4PAY-TAX (1-866-472-9829). You will be charged a flat fee of $3.95 to use this service.
To be able to use your debit card, your debit card must be a Visa Consumer Debit card or any card that has an NYCE, Pulse or STAR logo and your payment must be $1,200 or less.
Pay by check or money order
Complete the Form M60 payment voucher, which is included in this booklet, and send it with your check made payable to Minnesota Revenue to the address provided on the voucher.
If you are filing a paper Form M1, send the voucher and your check separately from your return to ensure that your payment is properly credited to your account.
Your check authorizes us to make a one-time electronic fund transfer from your account. You may not receive your cancelled check.
If you owe taxes, pay as much as you can afford when you file your tax return. If you cannot pay in full by the filing due date, make monthly payments using the M60 payment voucher until you receive a bill. After you receive the bill, you can request a payment plan by contacting the Collection Division at 651-556-3003 or 1-800-657-3909 or apply online at www.taxes.state.mn.us. All payment plans are subject to a $50 nonrefundable fee.
You can find additional information on payment plans at www.taxes.state.mn.us.
Penalties and interest
Late payment penalty
Your tax is due on the due date of your return - April 18 for most individuals - even if you have an extension to file your federal return.
If you pay all or part of your tax after the due date, a penalty of 4 percent will be assessed on the unpaid amount.
If you pay your tax 181 days or more after filing your return, you will be assessed an additional 5 percent penalty on the unpaid tax.
If you are unable to pay the full amount due, file your return and pay as much as you can by the due date to reduce your penalty.
Late filing penalty
There is no late filing penalty if your return is filed within six months of the due date, which is October 15 for most individuals. If your return is not filed within six months, a 5 percent late filing penalty will be assessed on the unpaid tax.
Penalty for fraudulently claiming a refund
If you file a return fraudulently claiming a refund, you will be assessed a penalty equal to 50 percent of the fraudulently claimed refund.
Other civil and criminal penalties
There are penalties for failing to include all taxable income, for errors due to intentionally disregarding the income tax laws, or for filing a frivolous return.
Also, there are civil and criminal penalties for knowingly or willfully failing to file a Minnesota return, for evading tax and for filing a false or fraudulent return.
Interest will be assessed after April 18, 2011, on any unpaid tax and penalty. The interest rate is determined each year.
The interest rate for 2011 is 3 percent.
Where to file paper returns
If you are filing a paper return, mail your Form M1, including all completed Minnesota schedules, and your federal form and schedules in the printed envelope included in this booklet. If you don’t have the printed envelope, mail your forms to:
Minnesota Individual Income Tax Mail Station 0010 St. Paul, MN 55145-0010
Use enough postage
To avoid having the U.S. Postal Service return your income tax forms to you for more postage, include enough postage on your envelope. If you enclose more than three sheets of paper, you will probably need additional postage.
If you expect to owe $500 or more, or Minnesota tax wasn’t withheld
If your income includes pensions, commissions, dividends or other sources not subject to withholding, you may be required to pay Minnesota estimated income tax payments.
You must pay estimated tax if you expect to owe $500 or more in Minnesota tax for 2011 after you subtract the amounts of any:
- Minnesota income tax you expect to be withheld from your income for 2011, and
- credits (amounts reported on Form M1, lines 27 through 30) you expect to receive for 2011.
See Individual Estimated Tax Payments Instructions on our website for details on how to estimate and pay your tax.
To pay electronically:
- go to www.taxes.state.mn.us, and click “Make a payment” from the e-Services menu, or
- call 1-800-570-3329 to pay by phone.
You can schedule all four payments at one time. You must use an account not associated with a foreign bank.
If you want to pay by credit or debit card, see Payment options on page 6.
If you pay by check, you must send your payment with a completed Form M14. Use the personalized M14 vouchers you may have received from the department or those provided by your tax preparer or software program to ensure your payments are credited properly to your account.
Your check authorizes us to make a one- time electronic fund transfer from your account. You may not receive your cancelled check.
Reporting federal changes
If the Internal Revenue Service (IRS) changes or audits your federal tax or you amend your federal return and it affects your Minnesota return, you have 180 days to amend your Minnesota return. File Form M1X, Amended Minnesota Income Tax Return, within 180 days after you were notified of the final changes by the IRS or after you filed your federal amended return.
If the changes do not affect your Minnesota return, you have 180 days to send a letter of explanation to the department. Send your letter and a complete copy of your federal amended return or the correction notice you received from the IRS to: Minnesota Revenue Mail Station 7703 St. Paul, MN 55146-7703
If you fail to report the federal changes as required, a 10 percent penalty will be assessed on any additional tax. In this situation, the department will have up to six additional years to audit your return.
If you need to correct your original Minnesota return
If you are amending your original return, you must file Form M1X within 3½ years of the due date of your original Minnesota return to claim a refund. Do not file a corrected Form M1 for the same year.
Filing on behalf of a deceased person
If a person received income in 2010 and died before filing a return, the spouse or personal representative should file Form M1 for the deceased person. The return must use the same filing status that was used to file the decedent’s federal return.
If you are filing Form M1 for a deceased person, enter the decedent’s name and your address in the name and address section. Print “DECD” and the date of death after the decedent’s last name.
For more information, see Income Tax Fact Sheet #9, Filing on Behalf of a Deceased Taxpayer.
Claiming a refund on behalf of a deceased person
If you are the decedent’s spouse and you are using the joint filing method, the department will send you the refund.
If you are the personal representative, you must include with the decedent’s return a copy of the court document appointing you as personal representative. You will receive the decedent’s refund on behalf of the estate.
If no personal representative has been appointed for the decedent and there is no spouse, you must complete Form M23, Claim for a Refund Due a Deceased Taxpayer, and include it with the decedent’s Form M1.
For more information, see Income Tax Fact Sheet #9, Filing on Behalf of a Deceased Taxpayer.
Power of attorney
The department is prohibited by law from disclosing your private information. If you want to grant power of attorney to an attorney, accountant, agent, tax return preparer or any other person as an attorney-in-fact, complete Form REV184, Power of Attorney. The person you appoint will be able to perform any and all acts you can perform for purposes of dealing with the department. If you wish, you may limit the authority to specific powers, such as representing you during an audit process.
If you are divorced, widowed or legally separated and still owe a joint liability
If in the past you filed a joint return with a former spouse and you still owe part of the joint liability, you may be eligible for the Separation of Liability Program. For information, contact the Taxpayer Rights Advocate at the address below.
If you have tax problems
If you have tax problems and cannot resolve them through normal channels, you may contact the Taxpayer Rights Advocate.
Taxpayer Rights Advocate
P. O. Box 7335
St. Paul, MN 55107-7335
Completing your return
You must provide by Minnesota law (M.S. 289A.08, subd. 11) your Social Security number, date of birth and all other information in order to properly identify you and to determine your correct tax liability. If you don’t provide it, the department will return your form to you. This will delay your income tax refund or if you owe tax, your payment will not be processed and you may have to pay a penalty for late payment.
If the return was completed by a paid preparer, include the identification number of the preparer. The preparer is subject to a penalty if the identification number is omitted.
Information not required
Although not required on Form M1, we ask for:
- a code number indicating a political party for the State Elections Campaign Fund,
- your daytime telephone number in case there are questions about your return, and
- the telephone number of the person you paid to prepare your return.
Use of Information
All information you enter on your income tax return is private. The department will use the information to determine your tax liability and may include the information as part of tax research studies. The information may also be used to verify the accuracy of any tax returns you file with the department.
Also, according to state law, the department may share and/or match some or all of the information, including your Social Security number, with:
- the IRS and other state governments for tax administration purposes,
- the Social Security Administration for purposes of administering the Minnesota Working Family Credit,
- Minnesota state or county agencies to which you owe money,
- another person who must list some or all of your income or expenses on his or her Minnesota income tax return,
- the Minnesota Department of Human Services for purposes of child support collection, verifying income for parental contribution amounts under children’s service programs, refundable tax credits claimed by applicants or recipients of various assistance programs, or the MinnesotaCare program,
- a court that has found you to be delinquent in child support payments,
- the Minnesota Department of Employment and Economic Development if you received unemployment compensation or are participating in an enterprise or JOBZ zone,
- Minnesota Management and Budget for purposes of preparing a revenue forecast,
- the Minnesota Racing Commission if you apply for or hold a license issued by the commission, or own a horse entered in an event licensed by the commission,
- any Minnesota state, county, city or other local government agency that you are asking to issue or renew your professional license or your license to conduct business, including a gambling equipment distributor license and a bingo hall license,
- the Minnesota Department of Labor and Industry for purposes of administering laws relating to tax, workers’ compensation, minimum wage and conditions of employment,
- a county, city or town that has been designated as an enterprise or JOBZ zone,
- the state auditor, if your business is receiving JOBZ benefits,
- the Minnesota State Lottery before you can contract to sell lottery tickets, or if you win a lottery prize of $600 or more,
- a local assessor for purposes of determining whether homestead benefits have been claimed appropriately,
- the Department of Health for purposes of epidemiologic investigations,
- the Legislative Auditor for purposes of auditing the Department of Revenue or a legislative program,
- the Minnesota Department of Commerce for locating owners of unclaimed property,
- sources necessary to use statutorily authorized tax collection tools for collecting tax or nontax debts,
- the Minnesota Department of Veterans Affairs, for purposes of locating veterans and notifying them of health hazards they were exposed to as a result of service in the armed forces, and of potential benefits to which they, their dependents or survivors may be entitled, or
- a district court to determine eligibility for a public defender.
There also may be instances in which the department will assist other state agencies in mailing information to you. Although the department does not share your address information, we may send the information to you on behalf of the other state agency.
If filing a paper return
If you are filing a paper Form M1, read page 16. If you fail to follow the instructions provided, processing of your return may be delayed.
Name and address area
Enter the information in the name and address section in all capital letters using black ink. Use your legal name. Do not enter a nickname.
If you live outside of the United States, place an X in the oval box to the left of your address to indicate you have a foreign address. This allows the scanning equipment to properly record your address.
If you are married and filing separate income tax returns, enter your spouse’s name and Social Security number in the area provided 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.
Date of birth
You are required by law to enter the month, day and year you were born on your return. If you are filing a joint return, also enter your spouse’s date of birth.
Federal filing status
You must use the same filing status to file your Minnesota return that you used to file your federal return. Place an X in the oval box to show the filing status you used to file your 2010 federal return.
State elections campaign fund
You may designate $5 of state money to go to help candidates for state offices pay campaign expenses. To designate, find the party of your choice in the list provided on your return and enter the corresponding code number where indicated. If you choose the general campaign fund, the $5 will be distributed among candidates of all major parties listed on Form M1. 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.
Before you enter amounts on Form M1, read the instructions on page 16.
- Round amounts to the nearest dollar. Drop amounts less than 50 cents and increase amounts 50 cents or more to the next higher dollar.
- If the line does not apply to you or if the amount is zero, leave the boxes blank.
Federal return information Lines A - D
Line A - Federal wages, salaries, tips, etc.
Enter your wages, salaries, tips, commissions, bonuses, etc. from:
- line 7 of federal Form 1040,
- line 7 of Form 1040A,
- line 1 of Form 1040EZ,
- line 8 of Form 1040NR, or
- line 3 of Form 1040NR-EZ.
Line B - Taxable IRA distributions, pensions and annuities
Enter the total of your taxable IRA distributions and your taxable pensions and annuities:
- add lines 15b and 16b of federal Form 1040,
- add lines 11b and 12b of Form 1040A, or
- add lines 16b and 17b of Form 1040NR.
Line C - Unemployment compensation
Enter the unemployment compensation you received in 2010 that is included on:
- line 19 of federal Form 1040,
- line 13 of Form 1040A,
- line 3 of Form 1040EZ, or
- line 20 of Form 1040NR.
Line D - Federal adjusted gross income
Enter your 2010 federal adjusted gross income from:
- line 37 of federal Form 1040,
- line 21 of Form 1040A,
- line 4 of Form 1040EZ,
- line 36 of Form 1040NR, or
- line 10 of Form 1040NR-EZ.
If your federal adjusted gross income is a negative number (less than zero), place an X in the oval box on line D to indicate it is a negative number.
Minnesota income Lines 1 - 5
Line 1 - Federal taxable income
Enter your federal taxable income from:
- line 43 of federal Form 1040,
- line 27 of Form 1040A,
- line 6 of Form 1040EZ,
- line 41 of Form 1040NR, or
- line 14 of Form 1040NR-EZ.
If your federal taxable income is a negative number (less than zero), you should have entered a zero on your federal return. However, on your Minnesota return, enter the actual number and place an X in the oval box on line 1 to indicate it is a negative number.
Line 2 - State income tax, sales tax or motor vehicle sales tax addition
Minnesota does not allow you to claim deductions for state income tax, sales tax or motor vehicle sales tax. If you itemized deductions on your 2010 federal Form 1040, you must add back any amounts you deducted on line 5 and line 7 of federal Schedule A for income tax, sales tax or motor vehicle sales tax. Complete the worksheet for line 2 below.
If you filed Form 1040A or 1040EZ, or did not itemize deductions on Form 1040, skip this line.
Nonresident aliens: Enter on line 2 the amount of state income tax from line 1 of your federal Schedule A (1040NR) or amount included on line 11 of Form 1040NR-EZ.
Table for step 2 of worksheet below
Check the boxes that apply to you and your spouse. If you are married filing separately, check boxes only for your own status, 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 blind
In the table below, find your filing status and the number of boxes you checked above (from 0-4) and enter the appropriate dollar amount in step 2 of the worksheet:
boxes checked above
dollar amount for step 2
|married filing jointly, or qualifying widow(er)||
|married filing separetely||
|head of household||
Partners, shareholders and beneficiaries: If you are a partner of a partnership, a shareholder of an S corporation or a beneficiary of a trust, report on line 5 of Schedule M1M income tax passed through to you by the entity, as reported on Schedule KPI, KS or KF. Do not include in line 2 of Form M1.
Worksheet for line 2
|If you itemized deductions, follow the steps below to determine line 2.|
|1 Amount from line 29 of your federal Schedule A||_______|
|2 If you are not a dependent, use the table above to find the amount for this step. Dependents: Enter the standard deduction from your federal return||_______|
|3 Subtract step 2 from step 1 (if result is zero or less, enter 0)||_______|
|4 State income tax or motor vehicle sales tax from line 5 and line 7 of federal Schedule A and any additional state income tax you may have included on line 8 (other taxes) of Schedule A||_______|
|5 Enter the amount from step 3 or step 4, whichever is less, on line 2 of Form M1.||_______|
|Married couples filing separate returns: Each spouse must complete a separate worksheet. If step 4 is less than step 3 for either spouse, each spouse must enter the step 4 amount of their own worksheet on line 2 of their Form M1.|
Line 3 - Other additions (Schedule M1M)
The amount you enter on line 3 will be added to your taxable income. Complete and include Schedule M1M if in 2010, 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 the bonus depreciation allowance for qualified property on your federal return,
- elected section 179 expensing,
- had state income tax passed through to you as a partner of a partnership, a shareholder of an S corporation or as a beneficiary of a trust,
- claimed the federal deduction for domestic production activities,
- claimed the additional federal standard deduction for sales tax or real estate taxes,
- excluded unemployment compensation on your federal return,
- claimed the federal deduction for college tuition and fees and/or educator expenses,
- deducted expenses or interest on your federal Form 1040 that are attributable to income not taxed by Minnesota,
- are an employer who received federal tax- exempt subsidies for providing prescription drug coverage for your retirees,
- federally deducted certain fines, fees and penalties as a trade or business expense,
- claimed a suspended loss from 2001 through 2005, 2008 or 2009 from bonus depreciation on your federal return,
- elected to defer federally the discharge of indebtedness income from reacquisition of business debt,
- 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 of 2009, or
- are required to complete Schedule M1NC.
You may have received this income as an individual, a partner of a partnership, a shareholder of an S corporation or a beneficiary of a trust.
Minnesota subtractions Lines 5 - 9
You may reduce your taxable income if you qualify for a subtraction. The more common subtractions are listed on lines 5 through 7 of Form M1. Other subtractions are listed in the line 8 instructions on page 12.
Line 5 - State income tax refund
Enter your state income tax refund from:
- line 10 of federal Form 1040,
- line 11 of Form 1040NR, or
- line 4 of Form 1040NR-EZ.
If you filed federal Form 1040A or 1040EZ, skip this line.
Line 6 - Net interest from U.S. bonds
Interest earned on certain federal obligations is federally taxable, but exempt from Minnesota tax.
Include federally taxable interest you received from U.S. bonds, bills, notes, savings bonds and certificates of indebtedness, and Sallie Mae bonds, as well as any dividends paid to you by mutual funds that are attributable to such bonds, reduced by any related investment interest and other expenses deducted on your federal return relating to this income.
Also include any net U.S. Government interest and dividends you received as a partner of a partnership, a shareholder of an S corporation or a beneficiary of a trust.
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, or contact the department.
Line 7 - K - 12 education expense subtraction
If in 2010 you purchased educational material or services for your qualifying child’s K - 12 education, you may be able to subtract qualified expenses from your taxable income, regardless of your income.
If your household income is less than the limits for the K - 12 education credit (see line 29 instructions on page 17), first complete Schedule M1ED, K - 12 Education Credit, to claim the credit for your qualifying education expenses. Qualifying expenses not used for the credit and any tuition expenses that do not qualify for the credit may be used for the subtraction. You cannot claim both a credit and a subtraction on the same expenses.
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 2010, and
- have attended a public, private or home school in Minnesota, Iowa, North Dakota, South Dakota or Wisconsin.
In addition to the above requirements, you must have purchased educational services or required materials during the year to help your child’s K - 12 education. The types of education expenses that qualify for the credit also qualify for the subtraction. However, certain expenses qualify only for the subtraction. For examples of qualifying education expenses, see page 11.
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 may subtract is $1,625 for each child in grades K through 6, and $2,500 for each child in grades 7 through 12.
See Income Tax Fact Sheet #8, K - 12 Education Subtraction and Credit, for more information.
Enter your qualifying education expenses on line 7. Also enter each child’s name and grade at the time the expenses were paid.
Worksheet for line 7
|If you qualify for the K - 12 education credit (line 29 of Form M1), and you cannot use all of your education expenses on Schedule M1ED, determine line 7 of Form M1 by completing the following steps:|
|1 Qualifying tuition expenses||_______|
|2 Qualifying computer expenses in excess of $200, up to a maximum of $200
Complete steps 3 - 6 if on Schedule M1ED line 17 is less than line 16.
|3 Line 15 of Schedule M1ED||_______|
|4 Line 18 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 7 of Form M1.|
Qualifying education expenses
In general, education expenses that qualify for either the K - 12 education subtraction on line 7 or the credit on line 29 of Form M1 include:
- instructor fees and tuition for classes or lessons taken outside the regular school day if the instructor is not the child’s sibling, parent or grandparent,
- purchases of required educational material for use during the regular school day,
- fees paid to others for driving your child to and from school for the regular school day, and
- computer hardware for personal use in your home and educational software.
The types of expenses that qualify only for the subtraction are private school tuition and tuition paid for college or summer school courses that are used to satisfy high school graduation requirements.
You must save your itemized cash register receipts, invoices and other documentation with your tax records. The department may ask to review them.
Expenses that do not qualify for either:
- purchases of materials for extracurricular activities,
- fees paid to others for transporting your child to and from activities outside the regular school day, and
- fees for extracurricular academic instruction provided by the child’s sibling, parent or grandparent.
If you qualify for the education credit - enter your qualifying expenses on the appropriate line of your Schedule M1ED and enter your expenses that qualify only for the subtraction on line 7 of Form M1. You cannot use the same expenses to claim both the credit and the subtraction.
The total of your subtraction and credit cannot be more than your actual allowable expenses.
If you do not qualify for the education credit - enter your qualifying expenses on the appropriate line of your Schedule M1ED and enter your expenses that qualify only for the subtraction on line 7 of Form M1. You cannot use the same expenses to claim both the credit and the subtraction.
The total of your subtraction and credit cannot be more than your actual allowable expenses.
If you do not qualify for the education credit—enter all of your qualifying expenses, up to the maximum amount allowed, on line 7 of Form M1.
Expenses that do not qualify for either - You cannot claim the following expenses:
- Costs for you to drive your child to/from school and to/from tutoring, enrichment programs or camps that are not part of the regular school day
- Travel expenses, lodging and meals for overnight class trips
- Fees paid for and materials and textbooks purchased for use in a program that teaches religious beliefs
- Sport camps or lessons
- Purchase of books and materials used for tutoring, enrichment programs, academic camps or after-school activities
- Tuition and expenses for preschool or post-high school classes
- Costs of school lunches
- Costs of uniforms used for school, band or sports
- Monthly Internet fees
- Noneducational software
* Study must be directed by a qualified instructor. A qualified instructor is a person who is not the child’s sibling, parent or grandparent and meets one of the following requirements: is a Minnesota licensed teacher or is directly supervised by a Minnesota licensed teacher; has passed a teacher competency test; teaches in an accredited private school; has a baccalaureate degree; or is a member of the Minnesota Music Teachers Association.
** If you are using all-day kindergarten fees to qualify for the dependent care credit, you cannot use the fees as qualifying education expenses for the credit or subtraction.
*** Computer-related expenses of up to $200 can be used to qualify for a credit and an additional subtraction of up to $200 per family. For example, if you have $300 of computer expenses and you qualify for both the credit and subtraction, you may use $200 of the expenses to qualify for a $150 credit and the remaining $100 of expenses can be used for the subtraction.
Line 8 - Other subtractions (Schedule M1M)
Complete Schedule M1M (included in this booklet) if in 2010, you:
- did not itemize deductions on your federal return and your charitable contributions were more than $500,
- reported 80 percent of bonus depreciation as an addition to income on Form M1 in a year 2005 through 2009, or you received a federal bonus depreciation subtraction in 2010 from an estate or trust,
- reported 80 percent of federal section 179 expensing as an addition to income in a year 2006 through 2009,
- were age 65 or older (as of January 1, 2011); are permanently and totally disabled and you received federally taxable disability income; and you qualify under Schedule M1R income limits (see Schedule M1R - Income qualifications in the next column),
- 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,
- 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,
- incurred certain costs when donating a human organ,
- paid income taxes to a subnational level of a foreign country (equivalent of a state of the United States) other than Canada,
- received business or investment income exemptions for participating in a Job Opportunity Building Zone (JOBZ),
- were insolvent and you received a gain from the sale of your farm property that is included in line 37 of Form 1040,
- received a post service education award for service in an AmeriCorps National Service program,
- elected in 2008 or 2009 a 3-, 4- or 5-year net operating loss carryback under the federal Worker, Homeownership and Business Assistance Act of 2009 and had a loss carryover separate from the federal NOL,
- reported a prior addback for reacquisition of business indebtedness income, or
- are required to complete Schedule M1NC.
If you complete Schedule M1M, include the schedule when you file Form M1.
Tax before credits Lines 11 - 16
Line 11 - Tax from table
Turn to the tax table on pages 22 through 27. Using the amount on line 10, find the tax amount in the column of your filing status. Enter the tax from the table on line 11.
Line 12 - Alternative minimum tax (Schedule M1MT)
You may be required to pay Minnesota alternative minimum tax if you were required to pay federal alternative minimum tax, or if you had large deductions (such as gambling losses, mortgage interest or K-12 education expenses) when you filed your federal or state return.
If you were required to pay federal alternative minimum tax, complete Schedule M1MT, Alternative Minimum Tax.
If you were not required to pay federal alternative minimum tax, determine if you are required to pay Minnesota alternative minimum tax by completing the following steps:
- Personal exemptions from line 42 of federal Form 1040 or line 26 of Form 1040A.
- Determine the total of the following items:
- accelerated depreciation
- exercise of incentive stock options
- tax-exempt interest or dividends from Minnesota private activity bonds not included on line 2 of Schedule M1M
- K-12 education expenses from line 7 of Form M1
- amortization of pollution-control facilities
- intangible drilling costs
- reserves for losses on bad debts of financial institutions
- circulation and research and experimental expenditures
- mining exploration and development costs
- installment sales of property
- tax sheltered farm loss
- passive activity loss
- income from long-term contracts for the manufacture, installation or construction of property to be completed after 2010
- gains excluded under IRC section 1202
- preferences and adjustments from an electing large partnership (from the AMT adjustment boxes from your Schedule K-1 of federal Form 1065-B)
- Add step 1, step 2 and line 40 of Form 1040.
- Subtract lines 4, 14 and 20 of federal Schedule A (1040) from step 3.
- You must complete Schedule M1MT if step 4 is more than:
- $61,150 if you are married and filing a joint return or filing as a qualifying widow(er),
- $30,570 if you are married and filing separate returns,
- $46,224 if you are single, or
- $45,361 if you are filing head of household
Before you complete Schedule M1MT, you must complete Part I of federal Form 6251, even if you were not required to file Form 6251 with your federal return.
On your Schedule M1MT, if line 27 is more than line 28, you must pay Minnesota alternative minimum tax. Include Schedule M1MT and Form 6251 when you file Form M1.
Schedule M1R - Income qualifications
If you (or your spouse if filing a joint return) are age 65 or older or permanently and totally disabled, use the table below to see if you are eligible for the subtraction.
Complete Schedule M1R and Schedule M1M:
|If you are:||and your gross income* is less than:||and your Railroad Ret. Board benefits and nontaxable Social Security are less than:|
|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, you lived apart from your spouse for all of 2010, and you are 65 or older or disabled||$21,000||$ 6,000|
|Filing single, head of household or qualifying widow(er) and you are 65 or older or disabled||$33,700||$ 9,600|
|* Adjusted gross income is federal adjusted gross income (line 37 of federal Form 1040 or line 21 of Form 1040A) plus any lump-sum distributions reported on federal Form 4972 less any taxable Railroad Retirement Board benefits.|
Line 14 - 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 to determine your Minnesota tax to enter on line 14.
See pages 4 and 5 to determine if you were a resident, part-year resident or nonresident.
If you complete Schedule M1NR, enter the amounts from lines 23 and 24 of Schedule M1NR on lines 14a and 14b of Form M1. Include Schedule M1NR when you file Form M1.
Line 15 - Tax on lump-sum distribution (Schedule M1LS)
If you received a lump-sum distribution from a pension, profit-sharing or stock bonus plan in 2010, you must file Schedule M1LS, Tax on Lump-Sum Distribution, if both of the following conditions apply:
- you filed federal Form 4972, and
- you were a Minnesota resident when you received any portion of the lump-sum distribution.
If you complete Schedule M1LS, include the schedule and Form 4972 when you file Form M1.
Did you purchase items over the Internet or through mail order this year?
Minnesota use tax
If you purchased taxable items for your own use without paying sales tax, you probably owe use tax. The use tax is the same rate as the state sales tax.
Here are some cases when use tax is due:
- You buy taxable items over the Internet, by mail order, from a shopping channel, etc., and the seller doesn’t collect Minnesota sales tax from you.
- A seller in another state or country does not collect any sales tax from you on a sale of an item that is taxed by Minnesota.
- An out-of-state seller properly collects another state’s sales tax at a rate lower than Minnesota’s. In this case, you owe the difference between the two rates.
If your total purchases subject to use tax are less than $770 in a calendar year, you are not required to file a use tax return. This exemption applies only to items for personal use, not to items for business use.
If your total purchases subject to use tax are $770 or more, you owe use tax on all taxable items purchased during the year.
- File for free online at www.taxes.state. mn.us. Click “Login to e-File Minnesota” on the right side of the screen. Enter your Social Security number and click on “Individual use tax,” or
- File a paper Form UT1, Individual Use Tax Return. The due date for Form UT1 is April 15.
Form UT1 and Fact Sheet 156, Use Tax for Individuals, are available at www. taxes.state.mn.us, 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 the box to the right, you must also pay local use taxes at the rates listed.
Local use tax rates
Albert Lea 0.5%
Austin . 0.5%
Clearwater . 0.5%
Cook County* 1.0%
Hennepin County 0.15%
Hermantown . 0.5%
Mankato . 0.5%
New Ulm 0.5%
North Mankato . 0.5%
Proctor . 0.5%
St. Cloud area (Sartell, Sauk
Rapids, St. Augusta, St. Cloud,
St. Joseph and Waite Park) . 0.5%
St. Paul 0.5%
(Anoka, Dakota, Hennepin, Ramsey and Washington Counties) . 0.25%
Two Harbors . 0.5%
Worthington . 0.5%
*Cook County’s local sales and use tax ended March 31, 2008, and began again on April 1, 2010.
Credits against tax Lines 18 - 21
Line 18 - Marriage credit
To qualify for the marriage credit, you must meet all of the following requirements:
- you are filing a joint return,
- both you and your spouse have taxable earned income, taxable pension or taxable Social Security income,
- your joint taxable income on line 10 of your Form M1 is at least $34,000, and
- the income of the lesser-earning spouse is at least $20,000.
If you qualify, complete the Marriage Credit Worksheet (on this page) to determine your credit.
Instructions for steps 2 and 3 of the Marriage Credit Worksheet
Separately determine the total each spouse received of the following types of income. Enter your result on step 2 and your spouse’s result on step 3:
- wages, salaries, tips and other taxable employee compensation
- self-employment income included on line 3 of federal Schedule SE (1040), less the self-employment tax deduction from line 6 of Schedule SE (also include losses from self-employment as a negative amount)
- taxable pension and Social Security income included on lines 15b, 16b and 20b of federal Form 1040 or lines 11b, 12b and 14b of Form 1040A, less any income you received from the Railroad Retirement Board included on line 16b of Form 1040 or line 12b of Form 1040A
Marriage Credit Worksheet
|1 Joint taxable income from line 10 of Form M1 (if less than $34,000, you do not qualify)||________|
|2 Your total of earned income, taxable pension income and taxable Social Security income||________|
|3 Your spouse’s total of earned income, taxable pension income and taxable Social Security income||________|
|4 Amount from step 2 or step 3, whichever is less (if less than $20,000, you do not qualify)||________|
|5 If step 4 is less than $86,000, use the table at left and the amounts from steps 1 and 4 to find your credit. Enter the credit here and skip steps 6 - 16. See the instructions below step 16||________|
If step 4 is $86,000 or more, continue with step 6.
6 Amount from step 4
|7 Value of one personal exemption plus one-half of the married-joint standard deduction||________|
|8 Subtract step 7 from step 6||________|
|9 Using the rate schedule for single persons on page 27, compute the tax for the amount on step 8||________|
|10 Amount from step 1||________|
|11 Amount from step 8||________|
|12 Subtract step 11 from step 10 (if zero or less, you do not qualify)||________|
|13 Using the rate schedule for single persons on page 27, compute the tax for the amount on step 12||________|
|14 Line 11 of Form M1||________|
|15 Add step 9 and step 13||________|
|16 Subtract step 15 from step 14. If the result is more than $347, enter $347. If result is zero or less, you do not qualify. Enter credit here and see instructions below||________|
Full-year residents: Enter the result from step 5 or step 16, whichever is applicable, on line 18 of Form M1.
Part-year residents and nonresidents: Multiply the result from step 5 or step 16, whichever is applicable, by line 25 of Schedule M1NR. Enter the result on line 18 of Form M1.
Line 19 - Credit for taxes paid to another state (Schedule M1CR)
If you were a Minnesota resident for all or part of 2010 and you paid income tax both to Minnesota and to another state on the same income, you may be able to reduce your tax. A Canadian province or territory and the District of Columbia are considered a state for purposes of this credit.
If you were a resident of another state but are required to file a 2010 Minnesota income tax return as a Minnesota resident, you may be eligible for this credit. To be eligible, you must have paid 2010 state tax on the same income to both Minnesota and the state of which you were a resident. You must get a statement from the other state’s tax department stating ineligibility to receive a credit on that state’s return for income tax paid to Minnesota. Include this statement with your Form M1.
If you claimed a federal foreign tax credit and you included taxes paid to a Canadian province or territory, you cannot use these same taxes paid to determine your Minnesota credit.
If you qualify, complete Schedule M1CR, Credit for Income Tax Paid to Another State, and include the schedule with Form M1.
If you worked in Michigan or North Dakota: If you were a full- or part-year resident of Minnesota and had 2010 state income tax withheld by Michigan or North Dakota from personal service income (such as wages, salaries, tips, commissions, bonuses) you received from working in one of those states, do not file Schedule M1CR. Instead, file that state’s income tax return to get a refund of the tax withheld for the period of time you were a Minnesota resident.
To get the other state’s income tax form, call that department or go to their website:
- Michigan Department of Treasury, 517- 373-3200, www.michigan.gov/treasury
- North Dakota Office of State Tax Commissioner, 701-328-1243, www.nd.gov/tax
Line 20 - Other nonrefundable credits (Schedule M1C)
Complete Schedule M1C, Other Nonrefundable Credits, if you:
- paid premiums in 2010 for a qualified long-term care insurance policy for which you did not receive a federal tax benefit,
- are a veteran who has separated from service and who served in the military for at least 20 years or has a 100 percent service-related disability,
- were a nonresident for all of 2010 and you sold a partnership interest on which some or all of the gain is taxable to Minnesota,
- purchased transit passes to resell or give to your employees,
- paid health insurance premiums for the first 12 months that you participated in a section 125 plan maintained by your employer,
- paid Minnesota alternative minimum tax in prior years and are not required to pay it in 2010, or
- 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.
Report the total of all credits from Schedule M1C on line 20 of Form M1. Include any schedules you completed when filing your return.
Line 23 - Nongame Wildlife Fund
You can help preserve Minnesota’s nongame wildlife, such as bald eagles and loons, by donating to the Nongame Wildlife Fund. If you wish to donate, enter the amount on line 23. This amount will decrease your refund or increase the amount you owe.
To make a contribution directly to the Nongame Wildlife Fund, go to www.dnr. state.mn.us/eco/nongame/checkoff.html or send a check payable to:
DNR Nongame Wildlife Fund
500 Lafayette Road, Box 25
St. Paul, MN 55155
Total payments Lines 25 - 31
Line 25 - Minnesota income tax withheld (Schedule M1W)
If you received W-2, 1099 or W-2G forms, or Schedules KPI, KS or KF showing Minnesota income tax was withheld for you for 2010, you must complete Schedule M1W, Minnesota Income Tax Withheld.
Include the schedule when you file your Form M1. If the schedule is not enclosed, processing of your return will be delayed and your withholding amount may be disallowed.
Do not send in your W-2, 1099 or W-2G forms. Keep your W-2, 1099 and W-2G forms with your tax records and have them available if requested by the department.
Line 26 - Minnesota estimated tax and extension payments
Only three types of payments can be included on line 26. They are:
- your total 2010 Minnesota estimated tax payments made in 2010 and 2011, either paid electronically or with Form M14,
- the portion of your 2009 Minnesota income tax refund designated on your 2009 Form M1 to be applied to 2010 estimated tax, and
- any payment made by the regular due date when you are filing after the due date, either paid electronically or with Form M13.
Contact the department if you are uncertain of the amounts paid.
Line 27 - Child and dependent care credit (Schedule M1CD)
To qualify for the child and dependent care credit, your household income - federal adjusted gross income plus most nontaxable income - must be $37,030 or less, and one of the following conditions 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 match the federal credit for child and dependent care expenses, OR
- you were an operator of a licensed family daycare home caring for your own dependent child who had not reached the age of six by the end of the year, OR
- you are married and filing a joint return, your child was born in 2010, and you did not participate in a pre-tax dependent care assistance program.
If one of the above conditions applies to you, complete and include Schedule M1CD, Child and Dependent Care Credit, to determine your credit.
Unlike the federal credit, which is allowed only up to the amount of your tax liability, the Minnesota credit is refundable. So you may be able to receive a refund even if you have no tax liability.
Enter the number of qualifying persons in the box provided on line 27.
Enclose Schedule M1W when required
If you are claiming Minnesota income tax withheld on line 25 of your Form M1, you must complete and enclose Schedule M1W with your return. If the schedule is not enclosed, processing of your refund will be delayed, and the department may disallow the amount of your withholding.
Also, do not send in your W-2, 1099 or W-2G forms. Keep these forms with your tax records and save your 2010 tax records at least through 2015. The department may ask you to show these records if there is any question.
If you pay your tax with a check
If you owe an amount on line 34 of Form M1 and you pay by check, you must complete a Form M60 payment voucher, which is included in this booklet. If you are filing a paper Form M1, send the voucher and your check separately from your return to ensure that your payment is properly credited to your account.
Your check authorizes us to make a one-time electronic fund transfer from your account. You may not receive your canceled check.
If you pay your tax after the due date
If you pay your tax after April 18, 2011, you must pay penalty and interest on the unpaid amount (see page 6 for details). Use the worksheet in the M60 instructions to determine the penalty and interest to include with your tax payment. Form M1 does not include a line to report penalty or interest.
Line 28 - Minnesota working family credit (Schedule M1WFC)
If you qualify for the federal earned income credit, you may also qualify for the Minnesota working family credit.
Use Schedule M1WFC, Working Family Credit, (included in this booklet) and the WFC table on pages 19 - 21 to determine your Minnesota credit.
Nonresidents and part-year residents may qualify for this credit based on the percentage of income taxable to Minnesota.
If you complete Schedule M1WFC, include the schedule with Form M1. Enter the number of your qualifying children in the box provided on line 28.
Line 29 - K - 12 education credit (Schedule M1ED)
You may receive a credit if you paid education- related expenses in 2010 for your qualifying children in grades kindergarten through 12 (K - 12). See qualifying expenses on page 11.
Married persons filing separate returns cannot claim this credit.
To qualify, your household income - which is your federal adjusted gross income plus most nontaxable income - must be under the limit based on the number of qualifying children you have in grades K - 12. A qualifying child is the same as for the federal earned income credit.
If your total number of qualifying children is:
Your household income limit is:
1 or 2
6 or more
|* For more than 5 children, the limit is $43,500 plus $2,000 for each additional qualifying child.|
If you qualify for the credit, complete Schedule M1ED, K - 12 Education Credit, (included in this booklet) and include with Form M1. Enter the number of qualifying children in the box provided on line 29.
Line 30 - Business and investment credits (Schedule M1B)
Complete and include Schedule M1B, Business and Investment Credits, if you qualify for any of the following credits as a sole proprietor or if you received a credit as reported on the Schedule KPI, KS or KF that you received as a partner of a partnership, shareholder of an S corporation or beneficiary of a trust:
- credit for increasing research activities,
- Angel investment tax credit (you must have received a certificate from DEED),
- Credit for historic structure rehabilitation,
- JOBZ jobs credit,
- Credit for tuberculosis testing on cattle (you must have owned cattle in Minnesota and incurred expenses to test your cattle for tuberculosis), or
- enterprise zone credit
Refund or amount due Lines 32 - 37
Line 32 - Your refund
If line 31 is more than line 24, subtract line 24 from line 31, and subtract the amount, if any, on line 35. This is your 2010 Minnesota income tax refund. If the result is zero, you must still file your return.
Of the amount on line 32, you may choose to:
- receive the entire refund in the mail as a paper check (skip lines 33, 34, 36 and 37),
- have the entire refund deposited directly into a checking or savings account (see the line 33 instructions), or
- apply all or a portion of your refund toward your 2011 estimated taxes and receive the remaining amount, if any, in the mail as a paper check (skip lines 33 and 34, and complete lines 36 and 37).
If you owe Minnesota or federal taxes, criminal fines or a debt to a state or county agency, district court, qualifying hospital or public library, the department will apply your refund to the amount you owe. If you participate in the Senior Citizens Property Tax Deferral Program, your refund will be applied to your deferred property tax total. Your Social Security number will be used to identify you as the correct debtor. If your debt is less than your refund, you’ll receive the difference.
Generally, you must file your 2010 return no later than October 15, 2014, or your right to receive the refund lapses.
Line 33 - Direct deposit of refund
If you want the refund on line 32 to be directly deposited into your checking or savings account, enter the requested information on line 33.
Note: You must use an account not associated with any foreign banks.
Refer to the sample below to find the routing and account numbers.
The routing number must have nine digits.
The account number may contain up to 17 digits (both numbers and letters). If your account number is less than 17 digits, enter the number starting with the first box on the left - leave out any hyphens, spaces and symbols - and leave any unused boxes blank.
If the routing or account number is incorrect or is not accepted by your financial institution, your refund will be sent to you in the form of a paper check. Your refund may also be issued as a paper check if a portion was recaptured to pay a debt you owe or an adjustment was made to your return.
By completing line 33, you are authorizing the department and your financial institution to initiate electronic credit entries, and if necessary, debit entries and adjustments for any credits made in error.
Line 34 - Amount you owe
If line 24 is more than line 31, you owe additional Minnesota income tax for 2010. If the difference is $500 or more, read the instructions for line 35 to determine line 34.
Subtract line 31 from line 24, and add the amount, if any, from line 35. Enter the result on line 34. This is the Minnesota income tax you must pay. Pay your tax using one of the methods described in Payment options on page 6.
If you are filing your return after April 18, 2011, a late payment penalty, a late filing penalty and interest may be due (see page 6). If you file a paper return and you include penalty and interest with your check payment, enclose the worksheet from the M60 instructions or a separate statement showing how you arrived at the penalty and interest. Do not include the late-filing or late-payment penalty or interest on line 34.
Line 35 - Penalty for underpayment of 2010 estimated tax (Schedule M15)
You may owe a penalty if:
- line 22 is more than line 31, and the difference is $500 or more, or
- you did not make a required estimated tax payment on time. This is true even if you have a refund.
Complete Schedule M15, Underpayment of Estimated Income Tax, to determine if you owe a penalty. Enter the penalty, if any, on line 35 of Form M1. Also, subtract the penalty amount from line 32 or add it to line 34 of Form M1. The penalty will increase the tax you owe or decrease your refund amount. Include Schedule M15 with your return.
To avoid this penalty next year, you may want to make larger 2011 estimated tax payments or ask your employer to increase your withholding.
Lines 36 and 37 - 2011 estimated tax
If you are paying 2011 estimated tax, you may apply all or part of your 2010 refund to your 2011 estimated tax.
On line 36, enter the portion of line 32 you want refunded to you as a paper check in the mail. You cannot request direct deposit.
On line 37, enter the amount from line 32 you want applied to your 2011 estimated tax. The total of lines 36 and 37 must equal line 32.
If you are not sure whether you must pay 2011 estimated tax, read Estimated payments on page 7.
Before you mail your return
Sign and date your return
If you are married and filing a joint return, both spouses must sign. An unsigned return is not considered valid. You may be subject to interest and penalties if you fail to sign. If you paid someone to prepare your return, that person must also sign and provide their federal preparer ID number.
To choose limited authority for preparer. You may check the box at the bottom of the return to give the department your permission to discuss your tax return with this paid preparer. Checking the box does not give your preparer the authority to sign any tax documents on your behalf or to represent you at any audit or appeals conference. For these types of authorities, you must file a power of attorney. For details, see page 7.
To choose not to file electronically. If you do not want your preparer to file your return electronically, check the appropriate box at the bottom of the return. Preparers who filed more than 10 Minnesota returns last year are required to electronically file all Minnesota returns, unless you indicate otherwise.
Include copies of federal forms
In addition to your Form M1 and all the Minnesota schedules you are required to complete, also enclose complete copies of your 2010 federal return and schedules.
How to assemble
Organize Form M1, its schedules and other documentation - when required - in the following order:
- Form M1, including page 2 if it is not printed on the back of your Form M1,
- Schedule M1W showing Minnesota withholding (Do not submit W-2, 1099 or W-2G forms with your return.),
- Any schedules KPI, KS and/or KF you may have received that show Minnesota income tax withheld or available credits,
- Minnesota schedules that you used to complete your return, according to the sequence number printed at the top of each, and
- At the end, place a complete copy of your federal return and schedules.
Do not staple or tape any enclosures to your return. If you want to ensure your papers stay together, use a paperclip.
If you do not enclose the required documentation, the department may send your return back to you.
Make copies of all your forms and schedules. Keep the copies and your W-2 forms with your tax records at least through 2015. You will be charged a fee to request copies of your forms from the department.
Also, if you are claiming the K - 12 education subtraction or credit, keep with your tax records original receipts and other documentation to substantiate your qualifying education expenses.
Minnesota Tax Help Links
- » Minnesota Form M1
- » Minnesota Form M14
- » Minnesota Form M23
- » Minnesota Form M60
- » Minnesota Schedule M15
- » Minnesota Schedule M1CD
- » Minnesota Schedule M1CR
- » Minnesota Schedule M1ED
- » Minnesota Schedule M1LTI
- » Minnesota Schedule M1M
- » Minnesota Schedule M1MT
- » Minnesota Schedule M1R
- » Minnesota Schedule M1W
- » Minnesota Schedule M1WFC
- » Additional Minnesota forms
- » Additional Minnesota State Income Tax Return Form, e-File, and Government Information
- » Access tax help for additional states