Mid-October deadline is ahead for military service members to claim their 2020 military tax credit

ST. PAUL, Minn. - The Minnesota Department of Revenue reminds the state’s military service members to take advantage of a refundable military tax credit before it expires. The 2020 Credit for Military Service in a Combat Zone will expire October 15, 2024, for qualifying service members.

More than 2,680 service members were eligible for the 2020 Form M99, Credit for Service in a Military Combat Zone, but 628 service members still have not claimed it.

The credit is $120 per month or partial month served.

“We encourage military service members who earned this credit to take advantage of this tax benefit,” said Revenue Commission Paul Marquart. “With an average credit amount of nearly $800, this puts real money back into the pockets of service members and their families.”

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 2020
• 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.

How do military service members claim this credit?

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 must be uploaded
  • 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 2020 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

The department sent letters to more than 880 service members on how they may qualify for and claim the credit. Service members have already claimed more than $1,620,720 in refunds for the 2020 credit, with an average refund of $796. Tax credits for service in a combat zone are also available for 2021, 2022, 2023, and 2024. 

Military members may now claim this credit any time during the calendar year. They no longer need to wait until the year following their service. The 2021, 2022, 2023, and 2024 Form M99, is now available to begin filing anytime in the calendar year.  

Check out and share the department’s video explaining who qualifies and how to claim the Credit for Military Service in a Combat Zone. For more information, visit the department’s Military Service Members webpage. 

You can also sign up for email updates by entering your email address and selecting “Military Information” under Individuals.