Minnesota Resident

Minnesota residency is determined based on several factors, one is that you choose to become a Minnesota resident. If you move into Minnesota and buy or rent a home, then from that time on, you are considered a Minnesota resident and your income - no matter where it is earned -- is taxable to Minnesota from that day forward. Another factor which helps to define residency is time. If you live in Minnesota for 183 days or more in a 12 month period, you are considered a resident for the time that you live here. More information about residency is available from Income Tax Fact Sheet #1, which can be found at

• www.taxes.state.mn.us

or call

• 651-296-4444

Minnesota Resident Responsibilities

Being a Minnesota resident means that you have certain rights and responsibilities. One of your responsibilities is to file and pay state income taxes.

As a Minnesota resident, you are required to file a state income tax return if you are required to file a federal return. There may be times when you should file a Minnesota return even if you are not required to file a federal return (for example, to file for a refund of Minnesota tax withheld from your pay by your employer or to claim a tax refund).

Filing a Minnesota Income Tax Return

Minnesota's income tax return is based on the federal filing, so you must complete the federal return before you start the state. Use Minnesota Department of Revenue Form M1 when you are required to file a state income tax return, when filing for a refund of state withholding, or to claim a refundable credit. You can find this form at

• www.taxes.state.mn.us

or call

• 651-296-4444

Refundable Credits

Minnesota has several refundable credits - money that you can receive when you file your income tax return. Most of them are for people with low incomes.

• The "Working Family Credit" is for low- income people who receive income from a job. It is based on the federal "Earned Income Credit," so if you qualify for the federal credit, you automatically qualify for the state credit.
• The "K-12 Education Credit" is for taxpayers who pay for qualifying school expenses for their children in kindergarten through the 12th grade. Household income must be below $37,500.
• The "Child and Dependent Care Credit" is for expenses paid to someone to provide care for your child while you work or go to school. You must qualify for the federal credit for child-care expenses in order to qualify for the state credit.
• The "Property Tax Refund" is a credit that is paid to Minnesota residents with low income and is based on a comparison of household income to property tax. (For renters, this is based on the "Certificate of Rent Paid" that is received from their landlords.) Landlords are required to give Certificate of Rent Paid (CRP) forms to their tenants by January 31st. If the CRP form has not been received by mid-February contact the Department at 651-296-3781 for assistance.

More information about these and other credits can be found at:

• www.taxes.state.mn.us

or you can call

• 651-296-3781

Improper Filing of Minnesota Tax

What happens if someone does not file a required tax return or files an incorrect return?

The Minnesota Department of Revenue receives information from many different agencies. Every year this information is reviewed, and if a tax return has not been filed, the Department will send a letter requesting a return.

If a return is incorrect, the Department will correct it and notify the taxpayer of this change.

If a return is knowingly filed incorrectly, penalties and interest will be charged. People who file fraudulent returns (returns that they know are wrong) can be criminally prosecuted.