MINNESOTA DEPARTMENT OF REVENUE REMINDING SERVICE MEMBERS TO CLAIM TAX CREDIT BEFORE IT EXPIRES

The Minnesota Department of Revenue reminds the state’s military service members to take advantage of a refundable military tax credit before it expires. More than 2,300 service members were eligible for the 2017 Form M99, Credit for Service in a Military Combat Zone, but about 1,100 service members still have not claimed it.

The 2017 Credit for Military Service in a Combat Zone will expire October 15, 2021, for qualifying service members. The credit is $120 per month or partial month served.

How do military service members qualify for this credit? To qualify for the credit, service members must have:

  • Been a Minnesota resident during the time of service
  • Served in a combat zone or qualified hazardous duty area during 2017
  • Received combat pay that is exempt from federal and Minnesota income tax

The IRS has online information about combat zone locations approved for tax benefits. Service members can now electronically file Form M99 through our e-Services system!  

To claim the credit electronically: Go to www.revenue.state.mn.us and enter M99 into the Search box. Complete the online form to apply for the credit.

  • For active duty members: Upload a Leave and Earnings Statement for each month of qualifying service
  • For National Guard, reservists, and retired or discharged active duty members: Upload Form DD-214 for each period of qualifying service

To claim the credit by mail: Complete the 2017 Form M99, Credit for Military Service in a Combat Zone

  • For active duty members: Include a Leave and Earnings Statement for each month of qualifying service
  • For National Guard, reservists, and retired or discharged active duty members: Include Form DD-214 for each period of qualifying service

Can service members claim this credit for other years?

Yes. Service members may claim this credit for tax years 2018, 2019, and 2020 if they qualify. File Form M99 for the appropriate year and include the required documents.

Where can I find more information?

Visit our website to learn more about credit for military service in a combat zone and other Minnesota tax benefits for military members.