Post by Admin on Jul 31, 2014 8:59:24 GMT -6
According to the Minnesota Department of Revenue, if you are
a Veteran of the U.S. military, including the National Guard
and Reserves, you may qualify for a tax credit of up to $750
for your past service. To qualify, you must have separated
from military service before the end of the year and one of the
following must be true:
• You served at least 20 years in the military,
• You have a service-connected disability rating of 100 percent
total and permanent (as rated by the U.S. Department of
Veterans Affairs), or
• (Beginning with tax year 2013) You were honorably
discharged and you receive a pension or other retirement
pay for service in the military.
What is the income tax credit for past military
service?
The credit for past military service equals $750 for qualifying
individuals. It is nonrefundable and is subject to an income
limitation. The credit took effect in tax year 2009 and was
first claimed on tax year 2009 returns filed in 2010. Eligible
individuals use form M-1C to claim the credit as part of their
income tax return.
Who qualifies for the credit for past military service?
To qualify for the credit, a Veteran must:
• have served in the military (including the National Guard
and Reserves) for at least 20 years;
• have a service-connected disability rated by the U.S.
Department of Veterans Affairs as being 100 percent total
and permanent; or
• be eligible for military retirement pay.
Individuals currently serving in the military do not qualify for
the credit.
What is a nonrefundable credit?
A nonrefundable credit may be used only to offset Minnesota
income tax liability. A Veteran must have at least $750 of
income tax liability to receive the full credit amount. A qualified
Veteran with less than $750 of state income tax liability is
eligible for a credit only up to the amount of tax. A qualified
Veteran with no state income tax liability is not eligible for
a credit.
In tax year 2014, a single Veteran with no dependents who
claims the standard deduction would need to have $24,069
of federal adjusted gross income (FAGI) to receive the full
$750 credit.
How does a nonrefundable credit compare with an
income tax subtraction?
A nonrefundable credit and an income tax subtraction both
reduce tax liability, but in different ways. A credit is a dollarfor-
dollar reduction in tax liability, while a subtraction reduces
taxable income, which reduces tax liability. The benefit from a
subtraction depends upon the taxpayer’s tax bracket or rate.
Please call the Minnesota Department of Revenue at
651-296-3781 or 1-800-652-9094 for full details,
restrictions and qualifications. You may also want
to consult a tax professional.
a Veteran of the U.S. military, including the National Guard
and Reserves, you may qualify for a tax credit of up to $750
for your past service. To qualify, you must have separated
from military service before the end of the year and one of the
following must be true:
• You served at least 20 years in the military,
• You have a service-connected disability rating of 100 percent
total and permanent (as rated by the U.S. Department of
Veterans Affairs), or
• (Beginning with tax year 2013) You were honorably
discharged and you receive a pension or other retirement
pay for service in the military.
What is the income tax credit for past military
service?
The credit for past military service equals $750 for qualifying
individuals. It is nonrefundable and is subject to an income
limitation. The credit took effect in tax year 2009 and was
first claimed on tax year 2009 returns filed in 2010. Eligible
individuals use form M-1C to claim the credit as part of their
income tax return.
Who qualifies for the credit for past military service?
To qualify for the credit, a Veteran must:
• have served in the military (including the National Guard
and Reserves) for at least 20 years;
• have a service-connected disability rated by the U.S.
Department of Veterans Affairs as being 100 percent total
and permanent; or
• be eligible for military retirement pay.
Individuals currently serving in the military do not qualify for
the credit.
What is a nonrefundable credit?
A nonrefundable credit may be used only to offset Minnesota
income tax liability. A Veteran must have at least $750 of
income tax liability to receive the full credit amount. A qualified
Veteran with less than $750 of state income tax liability is
eligible for a credit only up to the amount of tax. A qualified
Veteran with no state income tax liability is not eligible for
a credit.
In tax year 2014, a single Veteran with no dependents who
claims the standard deduction would need to have $24,069
of federal adjusted gross income (FAGI) to receive the full
$750 credit.
How does a nonrefundable credit compare with an
income tax subtraction?
A nonrefundable credit and an income tax subtraction both
reduce tax liability, but in different ways. A credit is a dollarfor-
dollar reduction in tax liability, while a subtraction reduces
taxable income, which reduces tax liability. The benefit from a
subtraction depends upon the taxpayer’s tax bracket or rate.
Please call the Minnesota Department of Revenue at
651-296-3781 or 1-800-652-9094 for full details,
restrictions and qualifications. You may also want
to consult a tax professional.