State Active Duty – MN Dept of Revenue Updates

Governor Tim Walz called the Minnesota National Guard to State Active Duty (SAD) in May 2020. Minnesota National Guard members may have received additional compensation under U.S. Code, Title 32, or Minnesota Statute 190.05, subdivision 5a(1).

The Minnesota Department of Revenue reminds Guard members that they may qualify for a Military Pay Subtraction on their 2020 Minnesota Individual Income Tax returns due April 15, 2021.

Which Guard members qualify for the subtraction?

Guard members may qualify if they received federally taxable active-duty pay for services or compensation for training and meetings under any of these laws:

• U.S. Code, Title 32

• Minnesota Statute 190.05, subdivision 5a(1)

• Minnesota Statute 290.0132, subdivision 11b

We updated our Military Pay Subtraction page to include a new example of qualifying service:

• Called to state active service in aid of state civil authority or in case of actual or threatened public disaster, war, riot, tumult, breach of the peace, or resistance of process

When can Guard members claim the subtraction for service in 2020?

They may claim the subtraction on their 2020 Minnesota income tax returns due April 15, 2021. 2020 Minnesota income tax forms will be available on our website by the end of the year.

What form will Guard members called to SAD receive?

Guard members will receive a unique Form W-2 sent by Minnesota Management and Budget (MMB) for their SAD compensation.

SAD compensation will not be reflected on W-2s issued by the Defense Finance and Accounting Services (DFAS).

What if Guard members did not claim this subtraction for previous Active-Duty service?

They may amend their Minnesota returns using Form M1X, Amended Minnesota Income Tax, and claim the subtraction. See our current and prior year forms and instructions.

To claim a refund, Guard members must generally amend returns within 3.5 years from the original return due date.