M1C: Other Nonrefundable Credits (2025)

Minnesota · Minnesota DOR · Used for tax years 2025

Minnesota’s 2025 Schedule M1C calculates nonrefundable credits reported on line 16 of Form M1. It lists individual credits and carryover credits from prior years and must be included with your return.

Who files this form

Complete 2025 Schedule M1C to claim the nonrefundable credits listed on the schedule and determine the amount for line 16 of Form M1.

The instructions say to complete this schedule if you or your spouse, when filing jointly, meet an applicable condition, including:

  • Filing jointly with taxable earned income, pension income, or Social Security income.
  • Paying premiums for a qualified long-term care insurance policy.
  • Being a full-year or part-year Minnesota resident who paid Minnesota and another state income tax on the same income in 2025.
  • Qualifying for the Credit for Past Military Service.
  • Purchasing transit passes to give or resell to employees.
  • Paying Minnesota alternative minimum tax in a prior year but not being required to pay it in 2025.
  • Investing in a certified SEED Capital Investment Program business in East Grand Forks, Breckenridge, Dilworth, Moorhead, or Ortonville.
  • Contributing to a qualified education savings account in 2025 without claiming the Education Savings Account Subtraction.
  • Being a licensed teacher who completed a qualifying master’s degree program begun after June 30, 2017.
  • Being a full-year or part-year resident who made eligible payments on your own qualified student loans.
  • Receiving a credit certificate from the Minnesota Rural Finance Authority.

The schedule also includes film production, manufactured home park sale, short line railroad, state housing, research activity, and prior-year carryover credits. Check the instructions for each credit you plan to claim.

What you'll need

Use the supporting schedules and certificates that apply to your credits. The form requests your name and Social Security number.

Supporting schedules

  • Marriage Credit: Schedule M1MA.
  • Long-term care insurance credit: Schedule M1LTI.
  • Taxes paid to another state: Schedule M1CR. For income tax paid to Wisconsin, complete Schedule M1RCR.
  • Employer Transit Pass Credit: Schedule ETP.
  • Education savings account contribution credit: Schedule M1529.
  • Teacher master’s degree credit: Schedule M1CMD.
  • Student Loan Credit: Schedule M1SLC.
  • Research activities credit: Schedule KPI, KS, or KF.
  • Alternative Minimum Tax Credit: Complete Schedules M1MT and M1MTC, and enclose Schedule M1MTC.

Certificates and other supporting information

  • Include your DEED credit certificate for the SEED Capital Investment Credit.
  • Use the applicable credit certificate numbers for beginning farmer management, agricultural assets, film production, short line railroad, and state housing credits.
  • For multiple state housing certificates, provide a statement listing the certificate numbers and each certificate’s amount.
  • For the agricultural assets credit, provide an attachment listing additional certificate numbers if you received more than three certificates.
  • Use amounts reported on Schedules KPI, KS, or KF where the credit instructions require them.
  • If you are claiming the other-state tax credit as a Minnesota resident under the 183-day rule while domiciled elsewhere, include the other state tax department’s statement that you cannot receive a credit there for income tax paid to Minnesota.

How to file

Include Schedule M1C with your 2025 Form M1. Include any supporting schedules you completed and the certificates or statements required for your credits.

  • Round amounts to the nearest whole dollar.
  • Complete the applicable credit lines and enter certificate numbers where requested.
  • Use the Worksheet for Line 16d to determine amounts for lines 16d, 16e, and 16f if claiming the research activities credit.
  • Add lines 1 through 15, 16d, 17, and 18. Enter the total on line 19 of Schedule M1C and line 16 of Form M1.

The supplied text does not give a mailing address or e-filing instructions.

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 benefits. You cannot claim the Credit for Past Military Service if you claimed the military retirement pay subtraction on Schedule M1M.
  • Reusing Canadian taxes already included in a federal foreign tax credit. Those same taxes cannot be used to determine your Minnesota credit.
  • Using research credit carryovers to calculate the refundable portion. The instructions specifically prohibit this.
  • Skipping required rounding. Round amounts to the nearest whole dollar.

Questions people ask

What are the Marriage Credit requirements for 2025?

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 $48,000, and the lesser-earning spouse’s earned income must be at least $31,000. Complete Schedule M1MA to determine the credit.

How much is the 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 is based on premiums paid in 2025 for which you did not receive a full deduction on Schedule M1SA. Use Schedule M1LTI to determine your credit.

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

The instructions require eligible payments on your own qualified student loans. You must also have been a full-year or part-year Minnesota resident in 2025, made the eligible payments in 2025, and had taxable earned income. Complete Schedule M1SLC to determine the credit.

Can unused credits carry forward?

Certain credits can. The line 17 table lists carryover periods of 3 years for beginning farmer credits; 5 years for film production, manufactured home park sale, and short line railroad credits; 10 years for housing credits; and 15 years for research activities and agricultural assets credits. Enter the prior-year unused credit you are claiming on your 2025 return in column F of line 17.

Official sources

All versions of M1C