Minnesota Property Tax Refund Programs::Minnesota offers several property tax refund programs to landowners and tenants, including the circuit breaker refund program and the special homeowner’s homestead credit refund program.These guidelines apply to householders whose net property taxes have increased by at least 12 percent, regardless of household income.Numerous tax credits and property tax relief programs are available in Minnesota to help businesses and other property owners save money. Some programs are automatic, while others may require you to submit an application with your county assessor’s office; other tax relief schemes have filing deadlines in the spring or fall, depending on the program; beginning farmers can receive non-refundable credits equivalent to enrollment in an approved farm business management (FBM) program.
Minnesota Property Tax Refund for Property owners
Homeowners in Minnesota are eligible for a property tax refund program based on their household income and annual property tax bill size. In addition, Minnesota offers a “targeting” property tax refund program that provides relief to homeowners experiencing substantial year-to-year increases.
The state’s website contains information on both forms of property tax programs and instructions on how to file a claim. Each county issues annual property tax statements in the spring, with payment vouchers due May 15 and October 15.
Your property tax statement should serve as the foundation for petitioning for a property tax refund, alongside copies of your federal income tax return and any other required documentation. Tax refund programs offer residents a valuable opportunity to place money back in their wallets to ensure that eligible individuals receive their refunds.
Minnesota Property Tax Refund for Renters
Renter Minnesota provides tenants and proprietors with property tax payment relief through the Renter’s Property Tax Refund and Homestead Credit Refund programs. Both programs consider the proportion of a household’s income that goes toward paying property taxes; homeowners may be eligible for targeted reimbursements if their taxes have increased substantially yearly.
- Protean e-Gov Technologies IPO
- I Bonds vs. Treasury Bills
- New IRS $600 Tax Rule
- Bharti AXA General Health Insurance
- IRM Energy IPO 2023
Fill out Form M1PR to apply for a Renter’s or Homestead property tax refund, detailing your household’s income and taxes paid directly or indirectly through the landlord. Additionally, you must present a Certificate of Rent Paid issued by them in January.
Eligible tenants and homeowners may file their M1PR returns electronically for free using the Department of Revenue’s Where’s My Refund system. To determine your eligibility, consult the MNDOR website and search for “property tax refund.” Once lodged, renters and homeowners can use the Where’s My Refund system to monitor the status of their M1PR refund.
Minnesota Property Tax Refund for Senior Citizens
The Senior Citizens Property Tax Deferral program allows taxpayers aged 65 or older to defer their property taxes through an interest-free loan from the state, which must be repaid upon the sale of the residence; any refunds received are applied to the deferred amount.
If you are a senior citizens with a limited income who needed assistance submitting a Minnesota Property Tax Refund and recovering money deducted from their Social Security payments. A volunteer from an AARP/RSVP community tax site will assist you in comprehending documents and responding to your questions regarding the PTR program.
AARP Foundation Tax-Aide and the Minnesota Department of Revenue provide free tax preparation assistance to Minnesota homeowners and tenants who use the search tool. In addition to preparing federal and Minnesota state returns, volunteers can also submit property tax credits and rebates.
Individuals who are Blind or Handicapped
Class 1b, a particular domicile classification for the blind and disabled, provides reduced property tax rates on market values up to $50,000 and additional cuts of 1.25 percent above this threshold. Eligibility differs from other homestead programs in that eligibility for this program is based on blindness or disability rather than the use of property; if you qualify, your homestead classification will accompany you wherever you move.
You must file an application with your assessor for the following year’s taxes by October 1 of each year. In addition, you must provide evidence that you are legally blind, such as a letter or current eye report verified by your doctor, as well as proof of your disability from an agency that certifies disability payments. Veterans with service-connected disabilities are eligible for a property tax rebate under state law.
Regular Property Tax Refund Income Requirements
The regular property tax refund program, also known as the circuit breaker rebate or homestead benefit, provides relief to householders whose property taxes are disproportionately high to their household income. Comparing the household income to the quantity of property taxes paid determines eligibility.
Renters who pay a portion of their property tax through rent may be eligible for the rental property tax credit. Their landlord must provide them with a Certificate of Rent Paid that indicates how much of their property tax was paid by tenants as part of their lease agreement. The Minnesota Department of Revenue has more information on eligibility and filing requirements.
Changes to the law could make households eligible for an income-independent property tax refund if their net property taxes rose by at least 12% and $100 from the previous year. See Form M1PR line instructions for additional information.
|If you are||and||You may qualify for a refund of up to|
|A homeowner||Your total household income is less than $128,280||$3,140|
|A renter||Your total household income is less than $69,520||$2,440|
Home Owner Requirements
- To qualify for a property tax refund, you must be a resident of Minnesota or a part-year resident.
- If you are a homeowner or mobile home owner, you must have possessed and occupied your home on January 2, 2023, and your property must be considered your domicile.
- Your primary residence cannot have any delinquent property taxes.
- Taxes on real estate were due in 2022.
- In 2022, payments in lieu of property taxes (including special assessments) were due.
Senior Citizen Requirements
- You are 65 or older. One spouse must be at least 65 years old, while the other must be at least 62. Your total household income must be at most $60,000.
- If you are married, you or your spouse must have owned and resided in your domicile for the past fifteen years. The homestead may be residential, agricultural, or part of a multi-unit structure.
- Your property is not subject to state or federal tax or judgment liens.
- The total unpaid balance of debts secured by mortgages and other claims against your residence is at most 75% of the assessor’s estimated fair market value.
Individuals who are Blind or Handicapped Requirements
If an eye specialist determines that a person’s visual acuity is less than 20/200 or their field of vision is less than 20 degrees, that person is considered blind.
For the purposes of this classification, a person is regarded as permanently disabled if they have a condition that is permanent and precludes them from working in any capacity. They must also receive disability-related payments from a qualifying agency.
Minnesota Property Tax Refund Ineligibility
- You are ineligible if You are a dependent.
- Someone can claim you on their 2022 federal income tax return.
- You lived with a parent, grandparent, sibling, aunt, or uncle for more than half the year, and you were under 19 (or 24 if a full-time student) at the end of the year.
- Completely and perpetually disabled throughout the year and providing less than 50 percent of your own support.
- Gross income less than $4,400 in 2022 and more than fifty percent of your support provided A person with whom you dwelt throughout the year or a parent, grandparent, child, grandchild, aunt, uncle, sibling, niece, or nephew.
- You reside in Michigan or North Dakota year-round.
- You are a nonresident alien residing in Minnesota, and both of the following statements are accurate:
- Your gross income fell below $4,400.
- More than fifty percent of your support came from a relative.
- You own a relative’s property. Neither the proprietor nor the occupants may claim a homeowner’s refund or special refund for property classified as a relative homestead.
- You do not have a Social Security Number or Individual Taxpayer Identification Number (ITIN) if you are a renter.
How to File for a Property Tax Refund in Minnesota
Income-based property tax relief programs are available in Minnesota for both tenants and homeowners. In addition to filing for a special property tax refund to offset increased homestead taxes, homeowners may apply for a special property tax refund.
To be eligible for a property tax refund, a household’s income must fall within specific parameters; eligibility increases for senior citizens. The state administers this program using Form M1PR; returns must be postmarked by August 15 at the latest.
You can use services like eFile Express which simplifies and secures the submission of your 2022 Minnesota M1PR; where most calculations are performed automatically, and any potential errors can be identified and corrected prior to filing your return.
By January 31, renters seeking property tax refunds must present a Certificate of Rent Paid (CRP) issued by their landlord. The CRP displays the amount of rent paid during the year and the proportion of rent that covered property tax payments.
By August 15, 2023, you must have e-filed, mailed, or hand-delivered your 2022 tax return. The final deadline to claim a refund for 2022 is August 15, 2024.
Minnesota Property Tax Refund filing situations
Homeowners and tenants in Minnesota may qualify for property tax relief through the regular and special property tax refund programs, homestead credits, and more administered by the Minnesota Department of Revenue. Visit their property tax refund page for more information and to register immediately.
By August 15, you must submit Form M1PR along with your other tax returns to claim a regular property tax refund. To be eligible for a special property tax refund, homeowner taxes must have increased by at least 12.18 percent and $100 over the previous year’s total; any portion attributable to improvements is subtracted. To claim either option, file M1PR by August 15.
What if I relocate after filing Minnesota Property Tax Refund?
- You may update your address by sending an email to individual.inc[email protected] or by calling 651-296-3781 or 1-800-652-9090.
- If you do not contact the income tax authority, they may delay your refund.
What if a person owing the property died?
Only a surviving spouse or dependent can submit a tax return for a decedent.
- If a property tax refund-eligible individual died in 2022:
- Submit your refund claim using both of your names.
- Use your annual earnings.
- Use the deceased spouse’s income through the date of death.
If the person died in 2023 before requesting a refund for 2022:
- Request the refund using both names.
- Print DECD and the date of death after the name of the decedent.
- Include a copy of the certificate of demise with the return.
Dependents (If there is no surviving spouse)
- Submit the refund request using the decedent’s name.
- Complete and submit Form M23, Refund Claim for a Deceased Taxpayer.
- Include a copy of the certificate of demise with the return.
If a person perished after filing a tax return but before tax authority issued the refund check, only the surviving spouse or dependent may receive the refund. If tax authority issued the cheque that was not redeemed before the decedent’s passing, it is considered part of the estate and may be paid to the personal representative.
What if my income or property tax changes?
File Form M1PRX, Amended Homestead Credit Refund (for Homeowners), and Renter’s Property Tax Refund if any of the following occur following the filing of your tax return:
- Your family’s income varies
- You receive a revised CRP from your landlord or property manager.
- You receive a revised invoice from the county.
- You must correct your original return.
- Typically, you have until February 15, 2027, to file a modified property tax refund return for 2022.
You will pay the difference if your amended tax return reduces your refund. You must pay interest on the difference between the original and current refund dates. If your refund increases, you will receive a check in the amount of the growth plus any applicable interest.
Where’s my Minnesota Property Tax Refund refund?
- Tax authority verify the information on each return to ensure the correct refund is issued to the correct individual. As each tax return is unique, the processing time varies.
- After July 1, visit www.revenue.state.mn.us and enter Where’s My Refund in the Search field to verify the status of your refund.
- When you use Where’s My Refund, website require your Social Security number or Taxpayer Identification number, date of birth, return type, tax year, and refund amount.
You can check to see if tax authority received your return using this system.
- Track your tax return throughout the procedure.
- Understand the stages your return goes through prior to receiving a refund.
- Check the date your refund was sent.
What can I do to get my refund faster?
- Electronic filing of your tax return
- Select direct deposit. (Use an account that you do not intend to close.)
- Include all supporting documentation.