Filing your Minnesota tax return for 2016 may still be necessary if you missed the original deadline, received a correction notice, or need to claim a refund. While most taxpayers file on time, some individuals and small business owners discover later that they were eligible for a refund or omitted essential details. Minnesota law allows you to file or amend older income tax returns within a limited timeframe, making it necessary to act quickly if the 2016 tax year still applies to you.

The Minnesota Department of Revenue requires residents, part-year residents, and even some nonresidents to file a state income tax return if their income exceeds certain thresholds. Filing is not only about compliance—it also ensures you're eligible for available state tax benefits like the property tax refund, homestead credit refund, and other refundable credits. Understanding the state’s 2016 tax rules helps you file accurately and avoid unnecessary interest or penalties, whether you're a wage earner, retiree, or sole proprietor.

This guide provides step-by-step instructions for individuals and small businesses to file their 2016 Minnesota income tax return. You’ll learn which Minnesota forms to use, how to file electronically or by mail, where to find up-to-date instructions, and how to track your refund. The information in this article is designed to be beginner-friendly and easy to follow—even if you’re unfamiliar with tax terms, state rules, or federal filing requirements.

Who Needs to File a 2016 Minnesota Tax Return

Whether or not you need to file a 2016 Minnesota income tax return depends on your residency status, income level, and filing situation. Full-year Minnesota residents were required to file a state return if they were also required to file a federal income tax return. In other words, if you filed a federal Form 1040, 1040A, or 1040EZ for 2016, you likely needed to file a Minnesota Form M1.

Part-year residents—those who moved into or out of Minnesota during 2016—must file a return if their total income (from both in-state and out-of-state sources) exceeds $10,350. You must also file if you wish to claim property tax refunds, the homestead credit refund, or other credits from the state. Nonresidents must file if they earned Minnesota-source income and were physically present in the state for at least 183 days during the year or maintained a permanent home (abode) in Minnesota.

The filing obligation applies to a wide range of taxpayers:

  • Wage earners with W-2 income from Minnesota employers
  • Retirees receiving pensions or Social Security benefits who meet income thresholds
  • Sole proprietors and other self-employed individuals who earned income in the state
  • Students, seniors, and part-time workers who had Minnesota tax withheld and are due a refund

Even if you weren't required to file, you may want to file voluntarily to claim a refund, especially if Minnesota income tax was withheld from your wages. Filing late could still allow you to recover money you're owed, but the Minnesota Department of Revenue only enables refund claims up to 3.5 years after the original due date. Review your income, federal forms, and state-specific rules to determine your filing obligation.

Key Forms and Schedules for 2016 Filers

To file your 2016 Minnesota tax return, you must complete Form M1, the primary document individual taxpayers use. This two-page form calculates your Minnesota taxable income based on your federal return and any state-specific additions, subtractions, and credits. All residents, part-year residents, and nonresidents required to file must use this form. Remember to include a complete copy of your 2016 federal forms (Form 1040 and applicable schedules) when submitting your Minnesota return.

In addition to Form M1, you may need to attach one or more schedules, depending on your situation. Standard 2016 schedules include:

  • Schedule M1W – Reports Minnesota income tax withheld from your wages
  • Schedule M1REF—Totals refundable credits, including the Working Family Credit and the homestead credit refund
  • Schedule M1M – Lists income additions and subtractions specific to Minnesota tax law
  • Schedule M1NR—Allocates income for nonresidents and part-year residents
  • Schedule M1CR—Claims a credit for taxes paid to another state
  • Schedule M1ED—Used for the K-12 education credit for qualifying families

You won't file a separate Minnesota business return if you're self-employed or own a small business structured as a sole proprietorship. Instead, you'll include Schedule C from your federal return and transfer your business income totals to Form M1. This applies to anyone reporting freelance work, independent contracting, or rental property income.

All official Minnesota tax forms, schedules, and instructions for 2016 can be downloaded from the Minnesota Department of Revenue website or accessed in person at select library or government service locations. If you print forms, use white paper and black ink, and avoid adding symbols or dollar signs to your entries. Proper use of forms ensures accurate processing and reduces the risk of delay or rejection.

How to Complete Your Minnesota Return Step by Step

Filing your 2016 Minnesota income tax return starts with collecting the proper documents and understanding how to fill out Form M1 accurately. Reporting income, credits, or filing status errors can delay your refund or trigger interest and penalties. Whether you're an individual taxpayer or a sole proprietor, this section will guide you through the process.

Documents to Gather Before You Begin

Make sure you have the following on hand:

  • A complete copy of your 2016 federal income tax return (Form 1040, 1040A, or 1040EZ)
  • W-2s and 1099s showing Minnesota income tax withheld
  • Records of estimated taxes paid during 2016
  • Documentation for deductions and refundable credits
  • Social Security numbers and birth dates for all household members
  • Bank routing and account numbers for direct deposit
  • Business income and expenses (if self-employed, from Schedule C)
  • Property tax or rent paid documentation (if applying for a property tax refund or homestead credit refund)

Filling Out Form M1: Line-by-Line Overview

Below is a simplified walkthrough of the key parts of Form M1:

  • Header Section:
    Enter your name, address, Social Security number, and other identifying info. If filing a joint return, include your spouse’s details.
  • Filing Status and Elections:
    Match your Minnesota filing status to your federal return. Optionally, a political party can be designated for the state elections campaign fund.
  • Federal Income Information:
    Use lines A–D to report federal adjusted gross income, filing status, and deductions.
  • Income & Adjustments (Lines 1–8):

Line 1: Federal taxable income

Line 2: State income tax or sales tax addition (if you itemized federally)

Line 3: Additional income (e.g., out-of-state bonds)

Lines 4–7: Subtotal income and adjustments

Line 8: Minnesota taxable income

  • Tax Calculation (Lines 9–14):
    Use the 2016 Minnesota tax tables to determine your tax liability. Enter your total taxable income, exemptions, and base tax owed.
  • Credits and Payments (Lines 15–27):
    Apply applicable nonrefundable and refundable credits, such as:
    • Working Family Credit (Schedule M1REF)
    • Education Credit (Schedule M1ED)
    • Credit for tax paid to another state (Schedule M1CR)
    • Minnesota income tax withheld (Schedule M1W)
    • Estimated payments made in 2016
  • Determine Refund or Balance Due (Lines 28–33):
    • You'll receive a refund if your payments and credits exceed your tax liability.
    • If you owe taxes, include payment or arrange for a payment plan.
  • Signature and Submission:
    Don’t forget to sign and date your return. If filing jointly, both spouses must sign. Unsigned returns are not valid and may delay processing.

Special Notes for Sole Proprietors

If you're a self-employed filer or run a sole proprietorship, follow these steps:

  • Complete Schedule C on your federal return
  • Transfer net income to your federal Form 1040
  • Carry your federal taxable income to Form M1, Line 1
  • Report any estimated tax payments you made for 2016 on Form M1, Line 24
  • Review business-related credits you may qualify for, such as those on Schedule M1B

Common Mistakes to Avoid

Avoid these frequent filing errors:

  • Using nicknames or mismatched names (must match Social Security cards)
  • Entering bank details incorrectly for direct deposit
  • Forgetting to attach the required Minnesota forms or your federal return
  • Skipping schedules like M1REF or M1NR when needed
  • Leaving out signatures or using symbols (like $ or decimals) in totals
  • Filing without first checking if you qualify for credits or refunds

How to File: Electronic vs. Paper Filing Options

Minnesota offers electronic and paper filing options for your 2016 income tax return. Choosing the proper method depends on your comfort with technology, access to tax software, and how quickly you want to receive your refund. In most cases, e-filing is faster and more accurate, while paper filing may be necessary if you're including unusual schedules or lack internet access.

Electronic Filing (E-File) Options

The Minnesota Department of Revenue encourages e-filing for faster processing and fewer errors. You can e-file your 2016 return using:

  • Commercial tax preparation software that supports back-year filings
  • A certified tax professional who offers e-filing services
  • Free file programs (if you qualify for low-income, senior, or military support programs)

Filing online allows quicker validation of your forms, automatic math checks, and direct deposit of your refund. To find approved e-file providers, visit the department’s website and search for “Approved Software Providers.”

Paper Filing Instructions

If you choose to file by mail, follow these steps carefully to avoid delays:

  • Print forms on white paper using black ink only
  • Use the correct Minnesota forms for 2016, including Form M1 and any applicable schedules
  • Organize your paperwork in this order:
    • Form M1 (pages 1 and 2)
    • Schedules (M1W, M1M, etc.)
    • A full copy of your federal return and schedules
  • Sign and date the return. For a joint return, both spouses must sign
  • Do not staple or tape forms—use a paperclip if needed

Mail your completed return to:

Minnesota Individual Income Tax
Mail Station 0010
St. Paul, MN 55145-0010

If you do not include a payment, use this address. If you submit a check, use the department's website's payment voucher system to generate a voucher and follow the mailing instructions on that page.

Important Reminders

  • Deadline for 2016 tax year: The original due date was April 18, 2017, but you can still file late returns within 3.5 years to claim a refund
  • Don’t forget to check whether you’re subject to interest or penalties if you owe tax.
  • Use the instructions provided on each form to ensure accuracy
  • Visit a library, community center, or tax clinic if you need help accessing forms or e-filing assistance

How to Make a Payment to the Minnesota Department of Revenue

If you owe Minnesota income tax for the 2016 tax year, you must pay the full amount due—even if you're filing late. The Minnesota Department of Revenue offers multiple payment options to help taxpayers pay safely and efficiently. Whether you're submitting a one-time payment or need to arrange a plan, it's essential to understand your choices and any interest or penalties that may apply.

Online Payment Options

You can pay your 2016 Minnesota income tax online using several secure options:

  • e-Services Payment System: Visit the Minnesota Department of Revenue website at revenue.state.mn.us and click “Make a Payment.” Payments from your bank account are free through this portal.
  • Credit or Debit Card Payment: You can pay online at www.payMNtax.com or call 1-855-947-2966.

    Important: This number and website are managed by Value Payment Systems, a third-party processor officially authorized by the Minnesota Department of Revenue. They are not government-operated. A service fee applies to all card payments.
  • Phone Payment: Call the authorized vendor at 1-855-947-2966 to pay by card over the phone. You will need your Social Security number and payment details.

These tools offer secure, fast payment methods and help you meet the required payment date to avoid interest or penalties.

Check or Money Order by Mail

If you prefer to pay by mail:

  1. Visit the department’s website and search for the e-Services Payment Voucher System
  2. Fill out the required details to generate a voucher for your 2016 tax return
  3. Make your check or money order payable to Minnesota Revenue
  4. Include the voucher with your payment—do not staple it to your tax forms
  5. Mail the check and voucher separately from your return to the address listed on the payment voucher

Print forms clearly and use correct information to ensure accurate processing.

Setting Up a Payment Plan

If you cannot pay the full amount owed:

  • Pay as much as possible by the due date to reduce penalties
  • Wait for a bill from the department, then call 651-556-3003 or 1-800-657-3909 to request a payment plan
  • A $50 setup fee applies, and you’ll still accrue interest on any unpaid balance
  • Payment plans are available for individual taxpayers, including those with business income reported on Schedule C

Setting up a plan helps you remain in compliance with state tax rules and may prevent collection actions.

How to Track Your Refund or Balance Due

After submitting your Minnesota income tax return, you can track the status of your refund or check if you still owe a balance. The Minnesota Department of Revenue provides several tools to help individual taxpayers easily monitor their return and payment details.

Online Refund Tracking Tool

Use the official “Where’s My Refund?” tool by following these steps:

  • Visit the department’s website: www.revenue.state.mn.us
  • Type "Where’s My Refund" in the search bar
  • Enter the following information:
    • Your Social Security number
    • Your date of birth
    • The exact amount of your expected refund (whole dollars only)

The system will show:

  • Whether your return was received
  • If it's being processed
  • The estimated date your refund will be issued

This tool is available 24/7 and updates daily.

Phone Tracking Options

If you don’t have internet access, you can call:

  • 651-296-4444 (Twin Cities area)
  • 1-800-657-3676 (toll-free in Greater Minnesota)

The phone system requires the same information as the online tool.

Refund Processing Times

E-filed returns with direct deposit are usually processed faster than paper returns. Delays may occur if your return requires review, is missing documentation, or includes credits like the homestead credit refund or property tax refund return. Filing early and using accurate information helps avoid slowdowns.

Final Checklist Before You File

Before submitting your 2016 Minnesota income tax return, use this final checklist to ensure everything is complete, accurate, and compliant with state rules. Missing documents or incorrect information can delay your refund, cause penalties, or result in your return being rejected by the Minnesota Department of Revenue.

Personal Information Review

  • Double-check all names and Social Security numbers
  • Confirm your current address is accurate and up-to-date.
  • Use the same filing status as your federal return
  • Ensure both spouses sign if filing a joint return

Required Forms and Attachments

  • Attach Form M1, both pages
  • Include all applicable Minnesota forms and schedules (e.g., M1W, M1M, M1REF, M1NR)
  • Add a complete copy of your federal return and any schedules (including Schedule C for sole proprietors)
  • If requesting a property tax or homestead credit refund, include rent or property tax documentation.

Bank and Payment Information

  • Verify bank routing and account numbers for direct deposit
  • If taxes are owed, confirm your payment method or submit a payment voucher
  • If paying by check, mail it separately with your voucher to the correct address

Before You File

  • Confirm all calculations and totals are correct
  • Review your return for credits you might qualify for
  • Make a copy of your entire return for your records
  • Submit your return before the deadline to claim your refund or avoid penalties

If you’re unsure about details, visit the department’s website, use free tax assistance programs, or connect with a tax professional.

Helpful Resources

For official forms, payment tools, and refund tracking, visit these Minnesota Department of Revenue pages:

Frequently Asked Questions

What if I missed the 2016 filing deadline—can I still file?

Yes. You can still file a 2016 Minnesota income tax return to claim a refund or correct an error. However, you must file within 3.5 years of the original due date (April 18, 2017). After that, you may lose your right to a refund. Late returns may also be subject to interest and penalties if taxes were owed but not paid by the original deadline.

How do I amend my 2016 Minnesota tax return?

To amend your 2016 Minnesota tax return, file Form M1X and include corrected Minnesota forms, updated federal forms, and any new documentation. Clearly explain the reason for the changes. You generally have 3.5 years from the original filing date to claim additional refunds. Amended returns can help you claim missed credits, adjust reported income, or fix math errors on your originally filed income tax return.

Do I need to file my business income separately?

No. If you’re a sole proprietor, report your business income on your return using Schedule C from your federal return. Transfer the totals to Form M1 to calculate your Minnesota taxable income. There is no separate state business tax return for sole proprietors. Depending on expenses, you may qualify for certain credits and exemptions, and you must include any estimated taxes paid for 2016.

How can I set up a payment plan for 2016 taxes?

If you can’t pay your full 2016 balance, wait for a bill from the Minnesota Department of Revenue, then call 651-556-3003 or 1-800-657-3909 to request a plan. A $50 setup fee applies, and interest continues to accrue. Plans are available for individual taxpayers, including self-employed filers. You may be asked to provide financial details. Timely payments help avoid further penalties and state collection actions.

Can I still claim a refund for 2016?

Yes, if you’re within the 3.5-year refund claim window from the April 18, 2017, due date. Filing now could allow you to recover Minnesota income tax withheld in 2016 or claim refundable credits, such as the property tax refund or Working Family Credit. Use the correct Minnesota tax forms and attach all required documentation. After the deadline passes, the refund is forfeited even if you were eligible.

How do I get copies of old forms like Form M1 or M1REF?

You can download 2016 Minnesota tax forms from the Minnesota Department of Revenue website, including Form M1 and Schedule M1REF. Visit www.revenue.state.mn.us, search for “2016 forms,” and select the needed forms and instructions. Many libraries and tax assistance programs may also carry archived print forms. Ensure you use only the 2016 versions to avoid errors, especially when filing late or amended returns.

What should I do if I have never received my 2016 refund?

If your 2016 refund hasn’t arrived, use the “Where’s My Refund?” tool on the Minnesota Department of Revenue website or call 1-800-657-3676. You’ll need your Social Security number, date of birth, and the exact refund amount. The tool shows whether your return was received, processed, or delayed. Filing errors, missing documentation, or incorrect bank info can slow refunds, so double-check your records and contact the department if needed.