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$120 for Every Month in a Combat Zone — Refundable, So It Pays Even at Zero Tax

Minnesota pays a credit of $120 for each month, or part of a month, of active service in a combat zone or qualified hazardous duty area after 31 December 2008. It is REFUNDABLE: if the credit is larger than your Minnesota tax, the commissioner refunds the difference, so it is money even for someone who owes nothing. A part-month counts as a whole month, which matters at both ends of a deployment. The test is Minnesota domicile at the time of the service, not now.

Verified August 27, 2026

What this benefit is

Minnesota pays a credit of $120 for each month, or part of a month, of active service in a combat zone or qualified hazardous duty area after 31 December 2008. It is REFUNDABLE: if the credit is larger than your Minnesota tax, the commissioner refunds the difference, so it is money even for someone who owes nothing. A part-month counts as a whole month, which matters at both ends of a deployment. The test is Minnesota domicile at the time of the service, not now.

What it's worth: $120 for each month or part of a month of qualifying service

  • $120 for each month OR PORTION OF A MONTH of qualifying service — a part-month counts in full.
  • The service must be after 31 DECEMBER 2008.
  • Qualifying areas: a combat zone designated by presidential executive order, a qualified hazardous duty area, or a location certified by the Department of Defense as eligible for combat zone tax benefits.
  • REFUNDABLE — the commissioner refunds any excess over your tax liability.
  • The test is Minnesota DOMICILE AT THE TIME OF THE SERVICE, not where you live now.
  • Twelve months of qualifying service is $1,440.

Who is entitled to it

  • You serve or served in the U.S. armed forces.
  • You served in a combat zone or hazardous duty area.
  • Minnesota pays this credit.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: With the Minnesota return for the year of service
  1. 1Count the months carefully. A partial month at the start and another at the end each count as a full month.
  2. 2Have the orders or DD214 showing the dates and the location.
  3. 3Claim it even if you owe no Minnesota tax — it is refundable.
  4. 4Check whether you were a Minnesota domiciliary during the service. That is the test, not current residence.
  5. 5If you missed it in an earlier year, ask Revenue about amending within the statutory period.
Form
Minnesota Form M1C, with the M1
File with
Minnesota Department of Revenue
Documents you will need
dd214
No renewal
Once granted it does not need renewing.
Worth knowingThis credit and the $750 past-service credit are in the same statute but are separate. Service in a combat zone does not stop you claiming the other if you also meet its tests.

Sources

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.