How to Claim the Minnesota Renters Credit

The Minnesota Property Tax Refund for Renters is a state program providing financial relief to families and individuals. Because a portion of rent is considered payment for property taxes, this credit refunds part of that amount to eligible renters. The program’s purpose is to lessen the financial burden on those with low or moderate incomes whose housing costs are high relative to their earnings. This refund is now claimed as a credit on the state income tax return, simplifying the process.

Determining Your Eligibility

To qualify for the Renter’s Credit, you must meet several criteria. A primary factor is your total household income; for the 2024 tax year, this must be below $75,390, though this threshold can increase with the number of dependents. You must also have been a full or part-year resident of Minnesota during the tax year. The credit is only available if you rent a property on which property taxes were paid, meaning the building cannot be fully tax-exempt.

You are not eligible if you can be claimed as a dependent on someone else’s federal tax return. Individuals living in nursing homes or other care facilities where government assistance programs pay for their care are not eligible; this includes payments from programs like Medical Assistance or Minnesota Supplemental Aid. You cannot claim the Renter’s Credit if you are also claiming the homeowner’s Homestead Credit Refund for the same year. You must also have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN) to qualify.

Information and Documents Needed to Claim the Credit

To file for the Renter’s Credit, you must have a Certificate of Rent Paid (CRP). A CRP is a form from your landlord that details the total rent you paid during the year and the property owner’s information. Landlords are required to provide a completed CRP to each renter by January 31 of the following year. This document is the basis for calculating your potential refund.

If your landlord does not give you a CRP by the deadline, you should first contact them to request it. If that fails, you can contact the Minnesota Department of Revenue for a Rent Paid Affidavit (RPA) to use as a substitute. To complete an RPA, you will need proof of your rental payments, such as receipts or canceled checks. In addition to the CRP or RPA, you will need to know your total household income for the year.

Calculating Your Refund Amount

The amount of your Renter’s Credit is determined by a formula that weighs your total household income against the rent you paid. The state assumes that 17% of your rent goes toward property taxes, a figure known as “rent constituting property taxes.” Your refund is calculated based on the amount of this implicit property tax that exceeds a certain percentage of your income. As your income increases, the refund amount is reduced.

To determine your specific refund, the Minnesota Department of Revenue provides refund tables and an online calculator. These resources are updated annually to reflect changes in income brackets and refund amounts. For the 2024 tax year, the maximum credit is $2,640. The state also allows certain income subtractions for dependents or for those who are over 65 or disabled, which can help some filers qualify for a larger refund.

How to File for the Renters Credit

There are two primary methods for submitting your claim. You can file electronically using state-approved tax software or through the Department of Revenue’s website. This method is the fastest and can help reduce errors. When filing electronically, you will input the information from your CRP directly into the software.

Alternatively, you can file by mail. You will use Schedule M1RENT to calculate your credit, and that amount is then entered on Schedule M1REF, which you file with your main Form M1 tax return. You must attach copies of all your CRPs to your paper return, as failing to do so could delay or result in the denial of your refund. The deadline to file is the state income tax deadline, April 15. Your Renter’s Credit will be included as part of your overall income tax refund or used to offset any taxes you owe.