M3: Partnership Return (including M3A) (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Form M3 is Minnesota’s 2024 Partnership Return. It reports the partnership’s minimum fee, pass-through entity tax, composite income tax and withholding for nonresident individual partners, credits, payments, and any amount due or refund. The included Form M3A reports property, pa
Who files this form
Form M3 is Minnesota’s 2024 Partnership Return. The form states that all partnerships must complete M3A to determine Minnesota-source income and the minimum fee.
The supplied form does not state which partnerships must file Form M3.
What you'll need
Include a complete copy of your federal Form 1065, Schedules K and K-1, and other federal schedules.
The form also calls for:
- M3A, Apportionment and Minimum Fee. M3A states that Schedule KPC must be included.
- Schedule PTE for pass-through entity tax.
- Schedules KPI for composite income tax for nonresident individual partners.
- Forms AWC received from partners.
- Schedule ETP for the Employer Transit Pass Credit not passed through to partners.
- Schedule EST for an additional charge for underpayment of estimated tax.
- Form TPD if you check the Tax Position Disclosure box.
If claiming the related credits, have the certificate numbers for the Film Production Tax Credit, Tax Credit for Owners of Agricultural Assets, and State Housing Tax Credit.
To complete M3A, have information about property values, rents paid, payroll including guaranteed payments to partners, and sales including rents received.
How to file
Complete Form M3 and M3A, and include the required federal return copies and applicable schedules. A partner or LLC member must sign and date the return. The form also provides a signature and date area for a paid preparer other than a partner.
Mail the return to:
Minnesota Partnership Tax
Mail Station 1760
600 N. Robert St.
St. Paul, MN 55146-1760
The form has a checkbox stating, “I do not want my paid preparer to file my return electronically.” The supplied text does not provide electronic filing instructions.
For an amount due, check the payment-method box for electronic payment or check. The form refers to instructions for payment details, but those instructions were not supplied.
Common mistakes
- Using staples: Do not use staples on anything you submit.
- Leaving amounts unrounded: Round amounts to the nearest whole dollar.
- Omitting federal attachments: Include a complete copy of federal Form 1065, Schedules K and K-1, and other federal schedules.
- Skipping M3A or Schedule KPC: The form says all partnerships must complete M3A, and M3A states that Schedule KPC must be included.
- Entering a minimum fee when exempt: If exempt from the minimum fee, leave M3A line 9 and M3 line 1 blank.
- Using an ineligible direct-deposit account: The account must not be associated with any foreign banks.
Questions people ask
How is the minimum fee determined?
Use the amount on M3A line 8 and the minimum fee table printed on M3A. Enter the fee on M3A line 9 and carry it to M3 line 1. The table lists a $0 fee when line 8 is less than $1,220,000.
Are farm partnerships exempt from the minimum fee?
Farm partnerships with more than 80% of income from farming do not have to pay the minimum fee. If exempt, leave M3A line 9 and M3 line 1 blank.
Can I apply an overpayment to next year’s estimated tax?
Yes. On the 2024 return, enter on line 23 the amount of your line 22 overpayment that you want credited to your 2025 estimated tax. Subtract line 23 from line 22 to determine the refund on line 24.
Can I receive my refund by direct deposit?
Yes. Enter your account type, routing number, and account number on line 25. The account must not be associated with any foreign banks. Otherwise, you will receive a check.