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Law, system changes serve Minnesota filers

Advocacy

Paul Marquart | October/November 2024 Footnote

Editor's note: Updated October 10, 2024

Update: The Minnesota Department of Revenue announced Thursday, Oct. 10, that the M1X electronic filing is on hold.

Summer was a busy time at the Department of Revenue as we implemented recent tax law changes and updated our forms, instructions and systems for next year’s filing season.

This year’s updates go well beyond the usual as we extend our online services and adopt law changes from the last two legislative sessions. Among them:
  • E-file option and updated process to amend Individual Income Tax returns.
  • Optional advance payment of the Child Tax Credit.
  • New refundable Renter’s Credit (replacing the property tax refund for renters).
These updates provide new options for Revenue’s customers to meet their tax obligations and claim tax benefits they quality for. As CPAs, you help many Minnesotans file accurate returns — and we value your partnership.

Amended returns for individuals

Starting with tax year 2024, we’ll accept amended Minnesota income tax returns electronically from software vendors. This has been a popular request from the MNCPA and others. We’re pleased to now offer this option as part of an updated filing process.

Form M1, Minnesota Individual Income Tax, now has a checkbox to indicate when you submit an amended return. (Form M1X, Amended Minnesota Income Tax, is now a schedule.)

To amend a return for 2024 or later:
  1. Complete Form M1 and any affected schedules with corrected information.
  2. Check the box on Form M1 to indicate it’s an amended return. 
  3. Complete Schedule M1X to show what changed from your original return.
  4. Submit Form M1, Schedule M1X and corrected schedules. You may do so electronically — if your tax software provides the option — or on paper.
  5. If you amended  a federal return, include a copy of Form 1040X, Amended U.S. Individual Income Tax Return, with all corrected federal forms and schedules.
We’ll note which companies offer e-filing of amended returns for 2024 when we update our list of approved software.

Renter’s credit

Starting with tax year 2024, a refundable Renter’s Credit replaces the property tax refund for renters. They’ll claim the Renter’s Credit on Form M1, Individual Income Tax. The credit will be part of their income tax refund or amount owed, instead of receiving a separate refund later in the year. 

To claim the Renter’s Credit:

  1. Complete Schedule M1RENT, Renter’s Credit, to determine if you qualify and the amount of the credit.
  2. Complete Schedule M1REF, Refundable Credits, to claim this credit and others you qualify for. 
  3. Include the schedules when you file your return on Form M1, Minnesota Individual Income Tax. Be sure to also include copies of your Certificates of Rent Paid (CRPs). 
Note: Homeowners who qualify for a property tax refund will continue to file a separate Form M1PR to claim the Homestead Credit Refund. 

Certificate of Rent Paid (CRP) update

To facilitate this change, property owners and managing agents are required to create and submit all 2024 CRPs using e-Services. The system assigns an Electronic Certificate Number (ECN) to each CRP for renters to use on their income tax return.

Child Tax Credit

Starting in 2025, families who qualify for a Minnesota Child Tax Credit in the previous year can choose to receive an advance payment of their credit. They must file a 2024 state income tax return to determine the amount of the credit and opt into the advance payment for next year.

We’re finalizing the amount and timing of the advance payments — likely no more than 50% of the 2024 credit, sent in the second half of 2025. Qualifying filers will also be able to choose advance payments in following years.

To claim the Child Tax Credit and receive advance payment in 2025:
  1. Complete 2024 Schedule M1DQC, Dependents and Qualifying Children, to determine who is a qualifying child for this and other family tax credits.
  2. Complete 2024 Schedule M1CWFC, Minnesota Child and Working Family Credits, to determine your credit amount. There is a checkbox to elect for advance payment of your 2025 credit.
  3. Complete 2024 Schedule M1REF, Refundable Credits, to claim this credit and others  a taxpayer may qualify for.
  4. Include the schedules when you file  the return on 2024 Form M1, Minnesota Individual Income Tax. 
Families who receive advance payment of their credit must file a 2025 Minnesota income tax return and Schedule M1CWFC to reconcile the amount they received and claim any additional credit they qualify for.

We’ll provide more details on these and other changes as filing season approaches. For the latest, sign up for our email bulletins at www.revenue.state.mn.us. 

We appreciate your dedication and work on behalf of your clients and we’re here to assist in any way we can. Contact us at taxpro.outreach@state.mn.us or 651-556-6606 if you have questions about these changes, Minnesota tax laws or our work.

As always, thanks for your partnership!

Paul Marquart is the commissioner of the Minnesota Department of Revenue.