Minnesota Department of Revenue sent this bulletin at 02/12/2015 04:57 PM CST
Form W-4MN has been updated to include a withholding exemption for certain members of the Minnesota National Guard or active duty U.S. military members. The exemption is available only to the wages earned through the military.
Do I qualify for this exemption?
You may qualify for this exemption if your wages are for Minnesota National Guard pay or for active duty U.S. military pay. Minnesota National Guard and active duty U.S. military members can claim exempt from Minnesota withholding on these wages, even if taxable federally.
If I qualify, what do I need to do?
If you qualify for this exemption, complete Form W-4MN and submit to your employer as soon as possible. To claim this exemption in future years, you must submit Form W-4MN to your employer by February 15.
When you file your Minnesota income tax return, complete Schedule M1M, Income Additions and Subtractions, and enter your qualified income as a subtraction on the appropriate line.
What if Minnesota tax has already been withheld from my pay in 2015?
Your W-2 for tax year 2015 will include this Minnesota withholding. When you file your 2015 Minnesota income tax return next year, claim this withholding. You are not able to get this withholding refunded to you before filing your 2015 Minnesota income tax return.
What if I claim this exemption and I have income from another source that is taxable to Minnesota?
If Minnesota tax is withheld from your other income, it may be enough to cover your Minnesota tax. If Minnesota tax is not withheld from your other income, you may need to make estimated tax payments to avoid penalty and interest.
Questions?
Visit our website to view Form W-4MN and instructions for further tax information regarding withholding for military personnel. Income Tax Fact Sheet 5, Military Personnel, also contains important tax information.