Minnesota Homestead Credit Refund

Minnesota has a property tax relief program for people living in their homes. It's called the homestead credit. This article covers how it works and the eligibility requirements.

The Minnesota Homeowner’s Property Tax Refund program provides property tax relief for homeowners. Eligibility is based on household income and property taxes paid. The program also allows for deferral of a portion of property taxes. To qualify for the deferral, a person must be 65 or older or permanently and totally disabled. A permanent and total disability can be established by a physician’s statement or an official determination from the Social Security Administration or any federal or state agency that is authorized to make such a determination.

There are two types of Minnesota property tax refund programs: the regular and the special. The regular property tax refund, also known as the circuit breaker refund, is based on both household income and the size of the property tax increase from one year to the next. The special property tax refund, on the other hand, is based solely on property taxes. A person is eligible for the special property tax refund if his or her net property taxes increased by more than 12% and $100. Several other factors, including the presence of dependents, being over age 65, contributing to a retirement plan, or living with a disability, may increase the amount of the refund.

Minnesota Homestead Credit Application

If you want to homestead your property, you must submit a completed application by December 31 of the year you wish to receive homestead status. You must also file a Minnesota income tax return and meet certain other requirements. Dependents claimed on another person’s return and non-resident aliens are not eligible for the credit.

The application must be signed by all owners and occupants who qualify to claim the homestead exemption. The qualifying occupants must include the owner, their spouse, and any children under age 19 or full-time students at a Minnesota school. Other qualifying relatives include brothers, sisters, parents, step-parents, daughter-in-law, son-in-law, grandchildren, and aunts and uncles. In addition, family farm corporations, farm partnerships, and life estates that meet certain conditions are eligible for the homestead exemption.

How to Claim Minnesota Homestead Credit?

You need to file a claim to receive the Homestead Credit Refund. This claim is typically submitted with your Minnesota income tax return using Form M1PR. You can file electronically, through tax filing software, or by mail.

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