Veterans Day inspires reminder of Minnesota Military Tax Credit
As Veterans Day approaches, the Minnesota Department of Revenue reminds members of the military that they may be eligible for hundreds of dollars in military related tax benefits.
"Veterans Day gives us a great opportunity to pause and reflect upon the sacrifices being made by the men and women of our armed forces," said Revenue Commissioner Myron Frans. "Reaching out to and reminding service members of the tax credits that are available to them are a small way to thank them for their service."
The Credit for Military Service in a Combat Zone is available to members of the military who have recently served in a designated combat zone or hazardous duty area. There is a credit of $120 for each month served beginning January 1, 2009.
To claim the credit, members of the military should complete and file Form M99, Credit for Military Service in a Combat Zone, for the year(s) in which they served. The department will accept the combat zone service performed in 2012 Form M99 beginning in January 2013. The Form M99 is filed separately from Form M1, Minnesota Individual Income Tax Return.
Service members are eligible to receive a credit for military time served in a combat zone if they meet all of the following requirements:
They served in a combat zone or qualified hazardous duty area anytime on or after January 1, 2009
The pay they received qualifies to be excluded as combat pay from federal gross income under Internal Revenue Code Section 112
Their home of record during months of service was Minnesota
As part of the department's outreach efforts, a service is available that provides military members and their families with up-to-date news about military credits, application deadlines for future credits, tax law changes, and resources. They can subscribe to it by going to our website and clicking on the Members of the Military page.
The Minnesota Department of Revenue also participates in the state's reintegration training program for soldiers returning from deployment. The training is coordinated by the Minnesota Army National Guard, and Department of Revenue staff helps service members complete the necessary forms for the military credit and assists with other tax matters.
To date, more than 29,000 claims for the military credit have been received totaling more than $14 million in refunds.
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