us-mn/form/department-of-revenue/ty2021/schedule-m1c/document-1

loading…

us-mn/form/department-of-revenue/ty2021/schedule-m1c/document-1 · Axiom

Your First Name and Initial Your Last Name Your Social Security Number 1 Marriage Credit for joint return when both spouses have taxable earned income or taxable retirement income (enclose Schedule M1MA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 Credit for long-term care insurance premiums paid (enclose Schedule M1LTI) . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Credit for taxes paid to another state (enclose Schedule(s) M1CR and M1RCR) . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Credit for Past Military Service (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 Employer Transit Pass Credit (enclose Schedule ETP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 SEED Capital Investment Credit (see instructions; enclose certification) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Education Savings Account Contribution Credit (enclose Schedule M1529) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Credit for Attaining Master’s Degree in Teacher’s Licensure Field (enclose Schedule M1CMD) . . . . . . . . . . . . 8 9 Student Loan Credit (enclose Schedule M1SLC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Beginning Farmer Management Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Enter the certificate number from the certificate you received from the Rural Finance Authority: BF 21 - 11 Film Production Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Enter the credit certificate number: TAXC - 12 Tax Credit for Owners of Agricultural Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Enter the certificate number from the certificate you received from the Rural Finance Authority: AO 21 - AO 21 - AO 21 - 13 Credit for increasing research activities (enclose Schedule KPI, KS, or KF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Carryforward of prior year Beginning Farmer Management Credits (see instructions) . . . . . . . . . . . . . . . . . . 14 BF - BF - 15 Carryforward of prior year Owners of Agricultural Assets Credits (see instructions) . . . . . . . . . . . . . . . . . . . . 15

AO - AO - 16 Carryforward of prior year Credit for Increasing Research Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 List the years the credits were reported to you on Schedule KPI, KS, or KF: 17 Alternative Minimum Tax Credit (enclose Schedule M1MTC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Add lines 1 through 17. Enter total here and on line 16 of Form M1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 You must include this schedule with your Form M1. 2021 Schedule M1C, Nonrefundable Credits Complete this schedule to determine line 16 of Form M1. Include this schedule when filing your return. 9995 *211661* Rev. 1/23

Should I file this schedule? Complete Schedule M1C if any of the following apply to you (or your spouse if filing a joint return): • You are filing a joint return and have taxable earned income, pension, or Social Security income • You paid premiums on a qualified long-term care insurance policy • You were a Minnesota resident for all or part of 2021 and paid income tax to both Minnesota and another state on the same income • You qualify for the Credit for Past Military Service (see the instructions for line 4 on this schedule) • You purchased transit passes to resell or give to your employees • You paid Minnesota alternative minimum tax in prior years and are not required to pay it in 2021 • You invested in a qualified business in East Grand Forks, Breckenridge, Dilworth, Moorhead, or Ortonville, and the business has been certi fied as qualified for the SEED Capital Investment Program • You contributed to a qualified education savings account in 2021 and did not claim the Education Savings Account Subtraction • You were a licensed teacher who completed a qualifying master’s degree program you began after June 30, 2017 • You were a full-year or part-year resident and made eligible loan payments on your own qualified student loans • You received a credit certificate from the Minnesota Rural Finance Authority Report the total of all credits from Schedule M1C on line 16 of Form M1. Include any schedules you completed when filing your return. Line Instructions Round amounts to the nearest whole dollar. Line 1 — Marriage Credit (Schedule M1MA) To qualify for the Marriage Credit, all of the following must apply: • You are filing a joint return • Both you and your spouse have taxable earned income, taxable pension, or taxable Social Security income • Your joint taxable income on line 9 of your Form M1 is at least $40,000 • The earned income of the lesser-earning spouse is at least $25,000 If you qualify, complete Schedule M1MA, Marriage Credit, to determine your credit. Line 2—Credit for Long-Term Care Insurance Premiums (Schedule M1LTI) You may be able to claim a credit against tax based on premiums you paid in 2021 for a qualified long-term care insurance policy for which you did not receive a full deduction on Schedule M1SA, Minnesota Itemized Deductions. To qualify, your long-term care insurance policy must do both of the following: • Qualify as a deduction (see Schedule M1SA), disregarding the income test • Have a lifetime long-term care benefit limit of $100,000 or more The maximum credit is $100 per person. If you qualify, complete Schedule M1LTI, Long-Term Care Insurance Credit. Line 3—Credit for Taxes Paid to Another State (Schedule M1CR and Schedule M1RCR) If you were a Minnesota resident for all or part of 2021 and you paid income tax to both Minnesota and another state on the same income, you may be able to reduce your tax. A Canadian province or territory and the District of Columbia are considered states for purposes of this credit. If you were a resident of another state, but are required to file a 2021 Minnesota income tax return as a Minnesota resident, you may be eli gible for this credit. To be eligible, you must have paid 2021 state tax on the same income to both Minnesota and your state of residence. You must get a statement from the other state’s tax department stating ineligibility to receive a credit on that state’s return for income tax paid to Minnesota. Include this statement with your Form M1. If you claimed a federal foreign tax credit and you included taxes paid to a Canadian province or territory, you cannot use these same taxes paid to determine your Minnesota credit. If you qualify, complete Schedule M1CR, Credit for Income Tax Paid to Another State, and include the schedule with Form M1. If you paid income tax to Wisconsin: A portion of your credit may be refundable. Complete Schedule M1RCR, Credit for Tax Paid to Wis consin, and include the schedule with Form M1. Line 4 — Credit for Past Military Service You qualify for a credit if you (or your spouse if filing a joint return) have separated from service, your adjusted gross income is less than $37,500, you did not claim a subtraction for military pension or other military retirement pay on line 25 of Schedule M1M, and one of the following is true: • You were honorably discharged and receive a military pension or other retirement pay for your service in the military. • You had served in the military for at least 20 years. • You have a service-related disability rated by the U.S. Department of Veterans’ Affairs as being 100 percent total and permanent. 2021 Schedule M1C Instructions Continued

If your adjusted gross income is: • $30,000 or less, enter $750 on line 4 of Schedule M1C (if you and your spouse both qualify for the credit and you are filing a joint return, enter $1,500) • Between $30,000 and $37,500, use the Worksheet for Line 4 to determine your credit amount. • More than $37,500, you do not qualify for this credit. You may not claim this credit if you claimed the subtraction for military retirement pay on Schedule M1M. Line 5 — Employer Transit Pass Credit (Schedule ETP) If you purchase transit passes to give or resell to your employees, you may be eligible for this credit. To qualify: • The transit pass must be a pass, token, farecard, voucher, or similar item entitling a person to transportation at regular or reduced prices. • The passes must be used in Minnesota. • The transportation must be provided by either of the following: • A public or privately-owned mass transit facility • A person in the business of transporting people for compensation or hire. The vehicle must have seating capacity for at least six adults, not including the driver. The credit is equal to 30% of the difference between the price you pay for the passes and the price you charge employees. If you qualify, complete Schedule ETP, Employer Transit Pass Credit. Enter the credit amount on line 5 of Schedule M1C, and include both schedules when you file Form M1. Include any credits reported to you on any Schedule KPI, KS, or KF you received. Line 6 — SEED Capital Investment Credit If you invest in a qualified business in Breckenridge, Dilworth, East Grand Forks, Moorhead, or Ortonville, and the business has been certi fied by the Minnesota Department of Employment and Economic Development (DEED) as qualifying for the SEED Capital Investment Program, you may qualify for this credit. You may carry the credit forward for up to four years. Enter the amount from the credit certificate you received from DEED. Include the credit certificate and Schedule M1C when you file Form M1. Line 7 — Education Savings Account Contribution Credit If you contributed to a qualified education savings account in 2021, you may be eligible for a nonrefundable credit. Complete Schedule M1529, and enter the credit on line 7 of Schedule M1C. Include both schedules with your Form M1. You are not eligible for this credit if you claimed the Education Savings Account Subtraction. Line 8 — Credit for Attaining Master’s Degree in Teacher’s Licensure Field If you were a licensed teacher who completed a master’s degree program in a core content area that you began after June 30, 2017, you may be eligible for a nonrefundable credit. Complete Schedule M1CMD, Credit for Attaining Master’s Degree in Teacher’s Licensure Field, and enter the credit on line 8 of Schedule M1C. Include both schedules with your return. Line 9 — Student Loan Credit If you were a full-year or part-year resident of Minnesota in 2021 and you made eligible loan payments on your own qualified student loans in 2020, you may be eligible for a credit against tax if you had taxable earned income. Complete Schedule M1SLC, Student Loan Credit, and enter your credit from the schedule on line 9 of Schedule M1C. Include both schedules with your return. Line 10 — Beginning Farmer Management Credit If you received a credit certificate from the Minnesota Rural Finance Authority for enrolling in a management class, enter the certificate number in the space provided and credit amount on line 10. You may carry the unused credit forward for up to 3 years after the tax year it is generated. Continued Worksheet for Line 4 If your income is between $30,000 and $37,500, follow the steps below: 1 The maximum credit is $750 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Federal adjusted gross income from line 1 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Income limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Subtract step 3 from step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Multiply step 4 by 10% (.10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Subtract step 5 from step 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Full-year residents: Enter the result here and on line 4 of Schedule M1C. Part-year residents and nonresidents: 7 Enter the percentage from line 30 of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Multiply step 6 by step 7. Enter the result here and on line 4 of Schedule M1C . . . . . . . . . . . . . . . . . . . . . . . . . If you and your spouse both qualify for the credit and are filing a joint return, multiply the result on step 6 (or step 8 if you are a part- year resident or nonresident) by 2. 30,000 750

Line 11 — Film Production Credit If you received a credit certificate from the Minnesota Department of Employment and Economic Development for certain eligible film production costs, enter the certificate number in the space provided and credit amount on line 11. The Film Production Credit should only be claimed for the tax year during which eligible film production costs were incurred. Line 12 — Tax Credit for Owners of Agricultural Assets If you received a credit certificate from the Minnesota Rural Finance Authority for selling or leasing agricultural assets to a beginning farmer, enter the certificate number in the space provided and credit amount on line 12. If you received a certificate as an individual, and from a Partnership or S-Corporation, enter the certificate number for the certificate you re ceived as an individual. If you received more than one certificate from an entity, but not as an individual, enter each certificate number on the spaces provided. If you received more than three certificates, provide an attachment with a list of the additional certificate numbers. You may carry the unused credit forward for up to 15 years after the tax year it is generated. Line 13 — Credit for Increasing Research Activities Include the amounts reported you on: • Schedule KS, line 17 • Schedule KPI, line 17 • Schedule KF, line 24 Attach the appropriate schedule when you file your return. You may carry the unused credit forward for up to 15 years after the tax year it is generated. Line 14 - Carryforward of prior year Beginning Farmer Management Credit If you have a carryforward of one or more prior year Beginning Farmer Management Credits, enter the certificate number for each credit. Next to each certificate number, enter the amount you are claiming for the current year. On line 14, enter the total carryforward amount for all credits you are claiming in the current year. Line 15 - Carryforward of prior year Owners of Agricultural Assets Credit If you have a carryforward of one or more prior year Owners of Agricultural Assets Credits, enter the certificate number for each credit. Next to each certificate number, enter the amount you are claiming for the current year. On line 15, enter the total carryforward amount for all credits you are claiming in the current year. Line 17 — Alternative Minimum Tax Credit (Schedule M1MTC) If you have never paid Minnesota alternative minimum tax, you do not qualify for this credit. If you paid Minnesota alternative minimum tax in one or more years from 1989 through 2020, but not for 2021, complete Schedule M1MT, Alternative Minimum Tax, and Schedule M1MTC, Alternative Minimum Tax Credit, to determine if you qualify or have a credit carry over from a prior year of any unused portion of your minimum tax credit. Enter the credit from Schedule M1MTC on line 17 of Schedule M1C.