M1QPEN: Qualified Public Pension Subtraction (2025)
Minnesota · Minnesota DOR · Used for tax years 2025
Minnesota Schedule M1QPEN calculates the 2025 Qualified Public Pension Subtraction using qualified pension payments, adjusted gross income, and filing status. The resulting subtraction is entered on Schedule M1M.
Who files this form
Use 2025 Schedule M1QPEN to figure the Qualified Public Pension Subtraction if you may qualify. You must meet all of these conditions:
- You receive pension payments or survivor benefits from a qualified public pension plan listed in the schedule’s instructions.
- The payments are taxable on your federal return.
- The payments you claim are not based on service for which you also earned Social Security benefits.
- Your adjusted gross income (AGI) meets the income limit for your filing status.
For 2025, you do not qualify if your AGI is greater than:
| Filing status | AGI eligibility limit |
|---|---:|
| Single or Head of Household | $103,489 |
| Married Filing Jointly or Qualifying Surviving Spouse | $127,319 |
| Married Filing Separately | $73,159 |
Coordinated members, who contributed to both a pension and Social Security for the same service, are not eligible unless they converted from basic to coordinated membership during their service. Converted members must use the Worksheet for Line 1 to determine the qualifying portion.
What you'll need
Have these records and details available:
- Your name, Social Security number, and pension administrator’s name.
- Federal Form 1099-R for the payer’s taxpayer identification number (TIN).
- The amount of your qualified public pension payments included in AGI.
- Form M1, line 1, for your AGI.
- Your pension membership information: basic, coordinated, or converted from basic to coordinated.
If you converted from basic to coordinated membership, you need the total months you contributed to the pension and the months you contributed only to the pension, not Social Security.
Additional attachments may be needed:
- Multiple qualified pensions with a paper filing: Include a statement listing each pension administrator, payer TIN, and qualified payment amount included on line 1.
- A conversion date different from the instructions’ table: Attach a letter from your pension administrator confirming the date.
- A pension absorbed by a listed 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 your conversion date, if applicable.
How to file
Read the instructions before completing the schedule.
- Enter your identifying and pension administrator information. Check the Qualified Pension Plan box and the membership boxes that apply.
- On line 1, enter qualified pension payments included in AGI. If you converted from basic to coordinated membership, complete the Worksheet for Line 1 first.
- Complete lines 2 and 3 using the printed maximum: $13,540, or $27,080 if Married Filing Jointly or Qualifying Surviving Spouse.
- Enter AGI from Form M1, line 1, on line 4. On line 5, enter $108,320 for Married Filing Jointly or Qualifying Surviving Spouse, $84,490 for Single or Head of Household, or $54,160 for Married Filing Separately.
- If line 4 is no more than line 5, skip lines 6 through 9 and copy line 3 to line 10. Otherwise, follow lines 6 through 9 to calculate the reduction.
- Enter the result on line 10 and on Schedule M1M, line 29. If the result is zero or less, enter 0; you do not qualify for the subtraction.
If filing on paper with multiple qualified pensions, include the separate pension statement required by the instructions. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Including nontaxable payments: Include only the federally taxable portion of your qualified pension on line 1. A pension that was not federally taxable does not qualify.
- Using the same pension income for more than one subtraction: Do not include amounts used for Schedule M1M’s federal active-duty military pay, Minnesota National Guard pay, nonresident federal active-duty military pay, military pensions and retirement, or foreign service retirement subtractions.
- Skipping the conversion worksheet: Members who converted from basic to coordinated membership must complete the Worksheet for Line 1. Carry the worksheet’s ratio to five decimal places.
- Assuming the table’s conversion date applies to everyone: The instructions warn that your pension’s actual conversion date may differ. Contact the Social Security Administration or your pension administrator to help determine the date.
- Rounding line 7 incorrectly: After dividing line 6 by 2,000, round up to the nearest whole number.
- Treating survivor benefits differently for membership purposes: Check membership boxes and complete any required worksheet as if you were the member who earned the pension.
Questions people ask
Can survivor benefits qualify?
Yes. Survivor benefits from a qualified public pension plan may qualify if the other eligibility conditions are met. Use the membership status of the person who earned the pension.
What is the difference between basic and coordinated membership?
A basic member contributed to the pension without contributing to Social Security for the same service. A coordinated member contributed to both at the same time. The instructions treat Civil Service Retirement System (CSRS) recipients as basic members and Federal Employees Retirement System (FERS) recipients as coordinated members.
What if I receive more than one qualified public pension?
Include all taxable qualified public pension payments on line 1. For a paper filing, include a separate statement showing each administrator’s name, payer TIN, and qualified payment amount included on line 1.
Can a pension from another state qualify?
The listed plans include those administered by another state, its political subdivisions, or the District of Columbia if they allow a similar or reciprocal subtraction or exemption. The other eligibility conditions still apply.
Where can I get help?
Visit www.revenue.state.mn.us and search for “Public Pension Subtraction.” You can also email individual.incometax@state.mn.us or call 651-296-3781 or 1-800-652-9094.