If you qualify for the federal Earned Income Tax Credit (EITC), you also qualify for the Minnesota Working Family Credit. You must first determine that you meet the federal requirements and complete the appropriate Earned Income Credit worksheet before you complete Schedule M1WFC.You can find out if you are eligible for the federal Earned Income Tax Credit by answering a few questions and providing basic income information using the EITC Assistant on the IRS website.To claim the Minnesota Working Family credit, you must file Form M1, Minnesota Individual Income Tax Return, and Schedule M1WFC. Qualifying child testMinnesota follows the federal definition for qualifying child. The following information is a summary of the four tests used to determine if the person is a “qualifying child” when claiming the federal EIC.- Relationship test – the child must be your child, grandchild, brother/sister, niece/nephew, stepbrother/sister or eligible foster child (placed by an authorized agency).
- Age test – the child must be under the age of 19 (under the age of 24 if a full-time student), or any age if permanently and totally disabled at the end of the year.
- Residency – the child must have lived with the taxpayer for more than half the year.
- Not self-supporting – the child cannot have provided more than half of his or her own support for the year.
For more information on qualifying child, see the IRS website.The Earned Income Credit worksheets are found in the federal Forms 1040, 1040A, and 1040EZ instruction booklets. In the 1040 instruction booklet, Worksheet A is used for most taxpayers. Self-employed taxpayers (and statutory employees filing Schedule C) use Worksheet B.Back to topMilitary members Minnesota military members are considered residents for tax purposes and are allowed a subtraction of their active duty military pay. This change allows Minnesota residents who are active-duty military to claim the Working Family Credit without having to prorate their credit amount.Combat pay: Beginning in 2004, for purposes of the federal EIC, military members are allowed to elect to include their nontaxable combat zone pay as earned income in calculating the EIC and the Child Tax Credit. Minnesota retroactively adopted this change at the same time it was federally effective. Part-year residents, nonresidents and American IndiansPart-year residents and nonresidents multiply their credit by the percentage of income assignable to Minnesota as calculated on Schedule M1NR. American Indians must prorate their credit based on the amount of income taxable to Minnesota. See the worksheet on the back of Schedule M1WFC for details.MS 290.0671Back to topBack to Credits.
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working_family_credit Table of Contents
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Working Family Credit - Related_Links
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