M1QPEN: Qualified Public Pension Subtraction (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota Schedule M1QPEN calculates the 2024 Qualified Public Pension Subtraction. It uses your taxable qualified public pension payments, adjusted gross income, and filing status to determine the subtraction reported on Schedule M1M.
Who files this form
Use 2024 Schedule M1QPEN to calculate the Qualified Public Pension Subtraction if you may qualify. You must meet all of these conditions:
- Receive payments or survivor benefits from a qualified public pension plan listed in the schedule’s instructions.
- Have pension payments that are taxable on your federal return.
- Meet the income requirements for your filing status.
- Claim only payments based on service for which you did not also earn Social Security benefits.
You do not qualify if your adjusted gross income (AGI) is greater than:
- Single or Head of Household: $101,190.
- Married Filing Jointly or Qualifying Surviving Spouse: $124,380.
- Married Filing Separately: $71,690.
Basic members contributed to their pension without contributing to Social Security for the same service. Coordinated members contributed to both and are not eligible unless they converted from basic to coordinated membership during their service. Converted members must complete the Worksheet for Line 1.
If your calculated subtraction on line 10 is zero or less, you do not qualify.
What you'll need
Have these items and details available:
- Your name, Social Security number, pension administrator’s name, and payer TIN. The payer TIN is on federal Form 1099-R.
- Your federally taxable qualified pension payment amounts.
- Your filing status and AGI from line 1 of Form M1.
- Your pension membership type: basic, coordinated, or converted from basic to coordinated.
- Schedule M1M, where you enter the completed subtraction on line 29.
If you converted from basic to coordinated membership: You need the total months you contributed to the qualified pension plan, the months you contributed only to the pension and not Social Security, and your federally taxable pension payments received in 2024.
If you file on paper and receive multiple qualified pensions: Include a separate statement listing each pension administrator, payer TIN, and qualified payment amount included on line 1.
If your pension was absorbed by a listed pension administrator: Attach a letter from your current administrator documenting the old administrator’s name, when the new administrator took over, whether you contributed to Social Security for the same service, and any basic-to-coordinated conversion date.
How to file
Read the instructions before completing Schedule M1QPEN. Enter your identifying and pension administrator information, then check the qualified-plan and membership boxes that apply.
Enter your qualified taxable pension payments on line 1, using the worksheet if you converted from basic to coordinated membership. Complete the calculation and enter the result from line 10 on line 29 of Schedule M1M.
If filing on paper with multiple qualified pensions, include the separate pension statement described above. Attach the administrator letter if your pension was absorbed by a listed administrator.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Including nontaxable pension payments. Line 1 includes only qualified pension payments included in federal AGI. If only part is federally taxable, include only that part.
- Leaving out another qualified pension. Include all taxable qualified public pension payments on line 1. Paper filers with multiple qualified pensions must also include a separate statement.
- Skipping the conversion worksheet. Members converted from basic to coordinated membership must complete it. Survivors complete it as if they were the member who contributed to the pension.
- Rounding line 7 incorrectly. Divide line 6 by 2,000 and round up to the nearest whole number.
- Completing unnecessary reduction lines. If line 4 is no more than line 5, skip lines 6 through 9 and copy line 3 to line 10.
- Entering a negative subtraction. If line 10 is zero or less, enter 0. You do not qualify for the subtraction.
Questions people ask
What is the maximum subtraction for 2024?
Line 2 uses $13,170, or $26,340 for Married Filing Jointly or Qualifying Surviving Spouse. The calculation starts with the lesser of that amount or your qualified payments on line 1. Your income may reduce the subtraction.
Can survivor benefits qualify?
Yes, survivor benefits from a qualified public pension plan may qualify if the eligibility conditions are met. Check the membership boxes as if you were the member who earned the pension. If a conversion worksheet is required, complete it on that same basis.
How are federal CSRS and FERS pensions treated?
Civil Service Retirement System (CSRS) recipients are considered basic members. Federal Employees Retirement System (FERS) recipients are considered coordinated members. Coordinated members are not eligible unless they converted from basic membership during their service.
Can a public pension from another state qualify?
The qualified-plan table includes plans administered by another state, its political subdivisions, or the District of Columbia when payments are based on service for which Social Security was not earned. The table directs you to contact your pension plan administrator about conversion dates.
Where can I get help?
Visit www.revenue.state.mn.us and search for “Public Pension Subtraction,” email individual.incometax@state.mn.us, or call 651-296-3781 or 1-800-652-9094.