M1C: Nonrefundable Credits (2024)

Minnesota · Minnesota DOR · Used for tax years 2024

Minnesota’s 2024 Schedule M1C reports nonrefundable credits, including credits for marriage, long-term care insurance premiums, taxes paid to another state, and student loan payments. It totals the credits for line 16 of Form M1 and must be included with that return.

Who files this form

Complete 2024 Schedule M1C to claim the nonrefundable credits listed on it and determine the amount for line 16 of Form M1.

The schedule may apply to you, or your spouse on a joint return, if you:

  • File jointly and both spouses have taxable earned income, pension income, or Social Security income.
  • Paid premiums for qualified long-term care insurance.
  • Were a Minnesota resident for all or part of 2024 and paid Minnesota and another state income tax on the same income.
  • Qualify for the Credit for Past Military Service.
  • Purchased transit passes to give or resell to employees.
  • Invested in a business certified for the SEED Capital Investment Program in one of the listed qualifying cities.
  • Contributed to a qualified education savings account in 2024 without claiming the Education Savings Account Subtraction.
  • Are a licensed teacher who completed a qualifying master's degree program.
  • Were a full-year or part-year Minnesota resident, had taxable earned income, and made eligible payments on your own qualified student loans in 2024.
  • Received a qualifying credit certificate from the Minnesota Rural Finance Authority.
  • Paid Minnesota alternative minimum tax in a prior year but not for 2024.

Schedule M1C also lists credits for film production, sales of manufactured home parks to cooperatives, short line railroad infrastructure modernization, state housing, increasing research activities, and eligible carryovers from prior years. Check the requirements for each credit you claim.

What you'll need

Have your Form M1 and the schedules or certificates for the credits you claim. Enter your name and Social Security number on Schedule M1C.

Credit schedules to include when applicable:

  • Marriage Credit: Schedule M1MA.
  • Long-term care insurance credit: Schedule M1LTI.
  • Taxes paid to another state: Schedule M1CR, and Schedule M1RCR for taxes paid to Wisconsin.
  • Employer Transit Pass Credit: Schedule ETP.
  • Education savings account credit: Schedule M1529.
  • Teacher's master's degree credit: Schedule M1CMD.
  • Student Loan Credit: Schedule M1SLC.
  • Increasing research activities credit: the appropriate Schedule KPI, KS, or KF.
  • Alternative Minimum Tax Credit: Schedule M1MTC. The instructions also direct eligible filers to complete Schedule M1MT.

Certificates and other supporting documents:

  • Include your DEED credit certificate for the SEED Capital Investment Credit.
  • Have the Rural Finance Authority certificate numbers for the beginning farmer and agricultural asset credits, the film production credit certificate number, and the MHFA certificate for the State Housing Tax Credit, as applicable.
  • If you received multiple State Housing Tax Credit certificates, provide a statement listing their numbers and amounts.
  • For the agricultural asset credit, provide an attachment listing additional certificate numbers if you received more than three certificates.
  • Use any Schedule KPI, KS, or KF that reports credits to you.
  • If claiming the other-state tax credit under the stated 183-day residency rule, include the other state's tax department statement confirming that you cannot receive a credit there for income tax paid to Minnesota.

How to file

  1. Complete the schedules for the credits you claim and enter the credit amounts on Schedule M1C. Round amounts to the nearest whole dollar.
  2. Enter required certificate numbers. For prior-year carryovers on line 17, enter the credit name, any required certificate number, and the unused credit you are claiming for 2024.
  3. Add lines 1 through 18 and enter the total on line 19.
  4. Enter that same total on line 16 of Form M1.
  5. Include Schedule M1C, the schedules you completed, and required certificates or statements when filing Form M1.

The supplied text does not give a mailing address or e-file directions.

Common mistakes

  • Leaving out Schedule M1C or supporting schedules. You must include Schedule M1C with Form M1 and include the schedules you completed.
  • Claiming both education savings benefits. You cannot claim the Education Savings Account Contribution Credit if you claimed the Education Savings Account Subtraction.
  • Claiming both military retirement benefits. You cannot claim the Credit for Past Military Service if you claimed the subtraction for military retirement pay on Schedule M1M.
  • Using the same Canadian taxes twice. If you included taxes paid to a Canadian province or territory in a federal foreign tax credit, you cannot use those same taxes to determine your Minnesota credit.
  • Claiming an alternative minimum tax credit without having paid Minnesota alternative minimum tax. The text says you do not qualify if you have never paid it.
  • Failing to round amounts. Enter amounts rounded to the nearest whole dollar.

Questions people ask

Who qualifies for the Marriage Credit?

You must file jointly, and both spouses must have taxable earned income, taxable pension income, or taxable Social Security income. Your joint taxable income on Form M1, line 9, must be at least $47,000, and the lesser-earning spouse's earned income must be at least $30,000. Complete Schedule M1MA to determine the credit.

What is the maximum long-term care insurance credit?

The maximum is $100 per person. The policy must qualify as a deduction, disregarding the income test, and have a lifetime long-term care benefit limit of at least $100,000. The credit applies to qualifying premiums paid in 2024 for which you did not receive a full deduction on Schedule M1SA.

Can I claim the Student Loan Credit for payments on someone else's loans?

The instructions describe eligible payments on your own qualified student loans. You must have been a full-year or part-year Minnesota resident in 2024, made eligible payments in 2024, and had taxable earned income. Use Schedule M1SLC to determine your credit.

Can unused credits carry forward?

Certain credits can. For example, unused Beginning Farmer Management Credit may carry forward for up to 3 years, Film Production Credit for up to 5 years, and Credit for Increasing Research Activities for up to 15 years. The line 17 table identifies eligible prior-year carryovers and the information to report on your 2024 return.

Official sources

All versions of M1C