ST. PAUL - As Veterans Day approaches, the Minnesota Department of Revenue joins all Minnesotans in remembering the service of our veterans.
The Department of Revenue also reminds current members of the military and veterans that they may be eligible for hundreds of dollars in military related tax benefits.
"Veterans Day serves as a reminder of the sacrifices made every day by the brave men and women of our armed forces," said Revenue Commissioner Cynthia Bauerly in a news release. "We are committed to making sure service members know about the the tax credits they are entitled to because of their service to our state and country."
The Credit for Military Service in a Combat Zone is available to members of the military who have served in a designated combat zone or hazardous duty area on or after Jan. 1, 2012. The credit is $120 for each month or partial month served.
Service members may qualify for the credit if they meet all of the following requirements:
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• They served in a combat zone or qualified hazardous duty anytime on or after Jan. 1, 2012.
• They received combat pay, which is exempt from federal and Minnesota income tax.
• They were a Minnesota resident during their months of service.
To claim the credit, service members must:
• File Form M99, Credit for Military Service in a Combat Zone, for the year(s) served, and attach corresponding Form DD-214 for each period of qualifying service.
• If still on active duty, attach Leave and Earnings statements for each month of qualifying service.
• Service members may qualify for this refundable credit even if they weren't required to file a Minnesota income tax return.
More than 1,100 service members have filed their 2014 M99 military credit, totaling $745,000 in claims, for an average credit of $681 per claim. To date, the department has received more than 39,000 claims for the military credit, totaling more than $20 million in refunds.
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Veterans may qualify for a nonrefundable credit up to $750 for past military service. They must be separated from service and meet one of the following requirements:
• Served in the military for at least 20 years.
• Have a service-related disability rated by the U.S. Department of Veterans' Affairs as being 100 percent total and permanent.
• Were honorably discharged and receive a military pension or other retirement pay for their service in the military.
To claim the credit, attach Schedule M1C, Other Nonrefundable Credits, to the Minnesota income tax return. Income limitations apply. Nearly 2,000 veterans claimed this credit on their 2014 Minnesota income tax return totaling more than $1.35 million in claims.
Go to www.revenue.state.mn.us for more information about military tax credits available or forms and instructions. Click on "Members of the Military" under the "Individuals" heading. An email subscription service provides up-to-date military information. For more information call 651-296-3781 or 800-652-9094 (toll-free) or email: individual.incometax@state.mn.us .
