Military Pay
Resident - Military income is excluded from taxation in Minnesota. To subtract military income in TaxSlayer ProWeb, from the Minnesota Return menu select:
- Subtractions from Income
- Active Duty Military Pay
- Enter the federally taxable Active Duty Military Pay - Enter the military pay as a positive number.
Nonresident - If the taxpayer is a nonresident of Minnesota stationed in Minnesota whose only source of income is active duty military pay, they are not required to file an Minnesota return.
One spouse is a resident of Minnesota and the other is not - Minnesota does not allow a MFS filing status if the federal return is MFJ. The Minnesota resident will need to file a nonresident return for the resident income.
Spouse Income - Military Spouses Residency Relief Act (MSRRA)
The MSRRA allows military spouses who reside with their service member spouse stationed in a nonresident state on military orders to keep their resident state for tax purposes. This means if the spouse has income from the nonresident state, they are not required to pay taxes to the nonresident state but report this income on their resident state return.
In order to be eligible for the income exemption under the MSRRA in Minnesota, the following conditions must be met by the military spouse/employee:
- The service member spouse must be in Minnesota on military orders
- The nonservice member spouse must be in Minnesota solely to be with the servicemember
- The nonservice member spouse must be domiciled in another state
If the military spouse meets the eligibility requirements, they can avoid Minnesota state tax from being withheld from their pay by providing their employer with the Minnesota Form W-4MN Withholding Allowance/Exemption Certificate.
To claim a refund of taxes withheld from the Minnesota income in error, from the nonresident Minnesota Return menu select:
- Income Subject to Tax
- Amount of Wages received as a nonresident military spouse - Enter the income as a positive number.
Note: This is an article on reporting military pay and military spouse pay in TaxSlayer ProWeb. It is not intended as tax advice.
Additional Information:
MN DOR: Military Personnel – How Minnesota Taxes Your Income
MN DOR: Minnesota Active-Duty Residency
MN DOR: Minnesota Military Pay Subtraction
MN DOR: Minnesota Service Member Spouse Tax Relief
While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the underlying state resources and publications.