In 2018, Minnesota residents who earned as little as $10,650 were required to file a state income tax return. Missing that deadline could mean paying penalties of 5% per month on any unpaid balance, plus interest that grows daily. Filing late for those expecting a refund can push the payout back by weeks, leaving your money in the state’s hands instead of your pocket.
This guide will walk you through how to file your Minnesota tax return for 2018, whether you are an individual, a sole proprietor, or a small business owner. You will learn who is required to file, which Minnesota tax forms you need, and how to avoid common mistakes that delay refunds or trigger penalties. We will also cover the key 2018 state tax changes, step-by-step filing instructions, and options for paying your income tax or setting up a payment plan if you owe.
Filing accurately and on time is more than a legal requirement—it is a way to protect your finances. Whether you are a full-year resident, part-year resident, or nonresident with Minnesota-source income, this article will give you the clarity and confidence you need to complete your state return correctly the first time.
Who Needs to File a Minnesota Tax Return in 2018
Not everyone earning income in 2018 needed to file a Minnesota state income tax return—but the rules are clear about who must submit one. Your filing requirement depends on your residency status, income level, and whether you were required to file a federal income tax return.
Full-Year Residents
You must file if:
- You were required to file a federal income tax return, or
- Your gross income exceeded the threshold for your filing status and age. For example, a single taxpayer born after January 2, 1954, had to file if they earned $10,650 or more. Married couples filing jointly had a higher combined threshold, and older taxpayers benefited from slightly higher limits.
Part-Year Residents and Nonresidents
If you lived in Minnesota for part of the year or lived elsewhere but had income from Minnesota sources, you must file if your Minnesota-source income totaled $10,650 or more in 2018. This applies to wages, business earnings, rental income, or other taxable income linked to the state.
Special Situations
You may need to file even if your income is below the threshold, including if you:
- Had Minnesota income tax withheld from your paycheck and want a refund
- Qualify for a refundable credit like the Minnesota Working Family Credit
- Received taxable income as a minor
- Are subject to Minnesota tax on specific federal adjustments
Before starting your return, verify your residency status and income sources. Residents are taxed on all income, while nonresidents are taxed only on Minnesota-source income. The Minnesota Department of Revenue’s instructions can help clarify which category you fall under. Filing when required ensures you meet your legal obligations, claim any refund you are owed, and avoid penalties for failing to file.
Key Dates and Deadlines
Filing your Minnesota income tax return on time is essential to avoid penalties and keep your refund from getting stuck in a slow processing queue. For the 2018 tax year, here are the dates every taxpayer needed to remember:
Regular Filing Deadline
- April 15, 2019, was the due date for filing your Minnesota tax return and paying any tax owed. Filing by this date ensures you avoid late-filing and late-payment penalties.
Extended Filing Deadline
- Minnesota granted an automatic six-month extension to file until October 15, 2019.
- This extension applied only to filing, not to payment. Any balance owed still had to be paid by April 15 to avoid interest and penalties.
Payment Due Date
- Payments were also due by April 15, 2019, even if you filed for an extension. Paying less than 90% of your tax liability by this date triggered late-payment penalties and interest charges.
Why Filing Early Matters
Filing early can:
- Speed up your refund—e-filed returns with direct deposit are often processed in as little as 2–3 weeks.
- Give you more time to address errors or missing documents before the deadline.
- Reduce identity theft risk by filing before someone else can fraudulently claim your refund.
Penalties for Missing Deadlines
- Late-filing penalty: 5% of the income tax paid per month, up to 25%
- Interest: Accrues daily on unpaid amounts until paid in full
Mark these dates on your calendar and aim to file early, especially if you expect a refund. Waiting until the last minute increases the risk of errors and potential delays.
2018 Minnesota Tax Law Changes
The 2018 tax year brought essential changes for Minnesota taxpayers, many of which differed from federal tax law. Understanding these differences was key to filing correctly and claiming the maximum refund.
Personal and Dependent Exemptions Retained
While federal law suspended personal and dependent exemptions starting in 2018, Minnesota continued to allow them at $4,150 per exemption. This meant families, especially larger households, could significantly reduce their Minnesota taxable income.
Flexibility in Itemizing
Minnesota allowed taxpayers to itemize deductions on their state return even if they claimed the standard deduction on their federal return. This benefited those with high state and local property taxes or other deductible expenses.
New Business-Related Credits
Two new agricultural credits were introduced in 2018:
Income Additions and Subtractions
Minnesota required adjustments for certain income types. Additions included taxable interest from other states’ municipal bonds. Subtractions included military retirement pay, interest from U.S. government bonds, and qualified K–12 education expenses.
Why These Changes Mattered
These adjustments and credits could significantly affect your Minnesota income tax owed or your refund. Taxpayers who didn’t review the Minnesota-specific rules risked missing deductions or credits that the federal return didn’t allow. The Minnesota Department of Revenue’s Form M1 instructions provided detailed guidance on how to apply these rules, ensuring taxpayers could accurately complete their return under the updated law.
Minnesota Tax Forms You’ll Need
Filing your 2018 Minnesota income tax return starts with knowing which forms to complete. The Minnesota Department of Revenue provides these through its website, and using the correct ones is critical for accurate filing.
Main Individual Income Tax Form
- Form M1 - Individual Income Tax Return: This is the primary form all individual Minnesota taxpayers must complete for 2018. It covers your income, deductions, credits, and final tax calculation.
Essential Schedules and Supporting Forms
- Schedule M1W - Minnesota Income Tax Withheld: Required if individuals had Minnesota tax withheld from wages, pensions, or other income. Attach this to your return when reporting withholding amounts.
- Schedule M1SA - Minnesota Itemized Deductions: Complete this if itemizing deductions gives you a better result than the standard deduction. Minnesota allows itemizing even if you used the federal standard deduction.
- Schedule M1REF - Refundable Credits: Used to claim credits such as
- Child and Dependent Care Credit
- Minnesota Working Family Credit
- K–12 Education Credit
- Credit for Parents of Stillborn Children
- Schedule M1M - Income Additions and Subtractions: Needed if you have adjustments due to differences between federal and Minnesota tax law, such as out-of-state municipal bond interest or military retirement pay.
Business-Related Filers
- Sole proprietors must file Form M1 with their federal Schedule C or C-EZ.
- Business income flows through to your individual Minnesota return.
Where to Find Forms
You can download all Minnesota tax forms and instructions from the Minnesota Department of Revenue website. Each form’s instruction booklet includes line-by-line guidance and examples.
Why Using the Right Forms Matters
One of the most common reasons returns are delayed or rejected is filing with the wrong form or leaving out a required schedule. Before you start, review the list of forms in the instructions to verify that you have all the necessary documents for your situation. Organizing your forms before you begin will save time, reduce the chance of mistakes, and help ensure a smoother refund process.
Step-by-Step Guide: How to Complete Your Minnesota Tax Return
Filing your Minnesota income tax return for 2018 can be straightforward if you follow a structured approach. The process begins with your federal return and moves through Minnesota-specific adjustments, deductions, and credits.
Step 1: Gather All Required Documents
Before filling out any forms, collect:
- Income records: W-2s, 1099s, Schedule K-1, records of business income and expenses
- Deduction records: receipts for charitable contributions, medical expenses, mortgage interest statements, property tax records
- Tax payment records: Form 1099-G for state tax refunds, estimated tax payment receipts
Having these in one place ensures your return is accurate and complete.
Step 2: Complete Your Federal Return First
Minnesota starts its tax calculations with your federal adjusted gross income (AGI). Your state return pulls information from the federal return, so completing your federal Form 1040 first will save time and reduce errors.
Step 3: Fill Out Form M1 Header Information
- Use your name exactly as it appears on your Social Security card
- Provide your current home address or P.O. Box
- Check “New Address” if you moved during 2018
- Use the same filing status you used on your federal return
Step 4: Report Income and Adjustments
- Line 1: Enter your federal AGI
- Line 2: Add income Minnesota taxes, but federal law does not (e.g., interest from municipal bonds issued by other states)
- Line 3: Add Lines 1 and 2 for your total Minnesota income
Step 5: Choose Your Deductions
- Standard deduction: Use amounts from the instructions based on your filing status and age
- Itemized deductions: Complete Schedule M1SA if it gives you a better result
- Minnesota allows itemizing even if you claimed the standard deduction federally
Step 6: Claim Personal and Dependent Exemptions
- $4,150 per exemption for yourself, spouse (if joint), and each dependent
- Note: Higher-income taxpayers may have reduced exemption amounts
Step 7: Apply Minnesota-Specific Subtractions
Subtract income Minnesota does not tax, including:
- State income tax refunds are reported federally
- Interest from federal government sources
- Military retirement pay
- Qualifying K–12 education expenses
Step 8: Determine Taxable Income and Calculate Tax
- Subtract your deductions and exemptions from your total income to get taxable income
- Use the tax tables in the instructions to find your Minnesota tax amount
Step 9: Add Additional Taxes (if applicable)
Some taxpayers must add alternative minimum tax, recapture amounts, or other specific taxes listed in the instructions.
Step 10: Apply Credits
Use the correct schedules to claim credits, such as:
- Marriage Credit
- Credit for Taxes Paid to Another State
- Long-Term Care Insurance Credit
- Refundable credits via Schedule M1REF
Step 11: Determine Final Refund or Amount Owed
- Report all tax payments made during 2018 (withholding, estimated payments, and refundable credits)
- Compare payments and credits to your total tax liability to see if you get a refund or owe money
Common Mistakes to Avoid
- Name mismatches with Social Security records
- Forgetting to attach required schedules like M1W or M1SA
- Using the wrong filing status
- Not reporting all the Minnesota tax withheld
- Incorrect bank account numbers for direct deposit
Final Verification Before Filing
- Double-check all math
- Verify Social Security numbers and addresses
- Ensure all required signatures are in place
These steps will help you accurately complete your Minnesota tax return, claim every deduction and credit available, and avoid unnecessary processing delays.
Filing Options: Electronic vs. Paper Filing
How you file your Minnesota income tax return for 2018 can affect how quickly your return is processed and when you receive your refund. The Minnesota Department of Revenue offers two main options: e-filing and paper filing.
Electronic Filing (Recommended)
E-filing is the fastest, most secure way to submit your return.
Benefits:
- Faster refunds: direct deposit from an e-filed return can arrive in 2–3 weeks.
- Fewer errors: approved software automatically checks calculations and required fields.
- Confirmation: You receive an acknowledgment when your return is accepted.
- Security: Electronic filing protects your data better than mailing paper forms.
How to E-file:
- Visit the Minnesota Department of Revenue website.
- Choose an approved e-filing software provider or hire a tax professional.
- Complete your forms electronically and submit directly to the state.
Most paid preparers must e-file unless you specifically request a paper return.
Paper Filing
Some taxpayers still prefer or need to file by mail.
Steps:
- Download and print the required Minnesota forms.
- Complete them by hand or type in the fields before printing.
- Include all necessary schedules and a copy of your federal return.
- Mail your package to:
Minnesota Individual Income Tax
Mail Station 0010
St. Paul, MN 55145-0010
Tips for Paper Filers:
- Use paper clips, not staples, to attach documents.
- Double-check that you have signed and dated your return.
- Keep copies of all forms and records for at least four years.
Filing electronically is usually the better choice for speed, accuracy, and security. Processing paper filing may take 6–8 weeks or longer, especially during peak tax season.
How to Make a Payment or Set Up a Payment Plan
If you owe Minnesota income tax for 2018, the Minnesota Department of Revenue offers multiple ways to pay. Ensuring your income tax is processed correctly can help avoid interest, penalties, and collection notices.
Electronic Payment Options
Online:
- Go to the Minnesota Department of Revenue website’s “Make a Payment” page.
- Connect securely to the payment portal and follow the steps to pay directly from your bank account.
- You can also schedule a payment for a future date.
- There is no fee for direct bank payments.
Phone:
- Call 1-800-570-3329 to pay over the phone using your bank account information.
- Have your tax year, amount, and account details ready before calling.
Check or Money Order
- Print a payment voucher from the Department of Revenue website.
- Make your check payable to “Minnesota Revenue.”
- Include your name, the last four digits of your Social Security number, and the tax year on the statement or check memo line.
- Mail your payment and voucher separately from your tax return.
Payment Plans
If you cannot pay the full amount, you can request a payment agreement:
- Pay as much as possible by the due date to reduce penalties.
- The state will send a bill, after which you can apply for a plan.
- A $50 setup fee applies.
- Interest continues to accrue until the balance is paid in full.
It is essential to keep your payment records updated and organized. Late payments may result in longer collection timelines, added penalties, and potential garnishment. Filing on time and arranging payments promptly helps you comply with Minnesota’s administrative rules.
Final Filing Checklist
Before you send your Minnesota tax return to the state, take a few minutes to run through this checklist. A complete return reduces the risk of delays, penalties, or rejected filings.
Return Completion
- Ensure Form M1 is filled out in full with all applicable lines completed.
- Ensure all required schedules are attached, such as Schedule M1W or M1SA.
- Verify names and Social Security numbers for all filers and dependents.
- Sign and date the return—unsigned returns will not be processed.
Documents to Attach
- W-2 and 1099 forms showing Minnesota income tax withheld
- A copy of your federal income tax return (if filing by paper)
- Payment voucher, if sending a check or money order separately
Payment and Refund Information
- Confirm direct deposit details for faster refunds
- If you owe tax, arrange payment online, by phone, or by mail
- Keep payment confirmation numbers or receipts
Record Keeping
- Store copies of your return, supporting documents, and payment proof for at least four years
- Keep digital backups to ensure records remain updated and accessible
Completing this checklist before filing can prevent last-minute issues and give you peace of mind that your Minnesota income tax return is ready for submission.
Frequently Asked Questions (FAQs)
Who must file a Minnesota income tax return if they are part-year residents?
Part-year residents must file a Minnesota income tax return if they had $10,650 or more in Minnesota-source income during 2018. Even if below that amount, filing may be wise for people who had Minnesota tax withheld and want a refund. Completing the correct Minnesota form ensures accurate reporting and potential credit claims.
How do I request an extension for my Minnesota income tax return?
Minnesota grants all taxpayers an automatic six-month filing extension, but it only covers the paperwork, not payment. People estimate their balance by the original due date to avoid penalties. Filing the proper Minnesota form with payment details ensures compliance with state rules and helps avoid late payment interest charges.
Can I e-file my Minnesota income tax return for free?
If your 2018 income was $84,000 or less, you may qualify for free e-filing through the Minnesota Department of Revenue’s approved software providers. Many people find this faster and more accurate than paper filing. Select the proper Minnesota form in the program and follow prompts to submit securely and receive faster refunds.
What if I receive a corrected W-2 after filing my Minnesota income tax return?
You may need to file an amended Minnesota income tax return using Form M1X. This applies to people who received corrected W-2 or 1099 statements after submission. Submitting the updated Minnesota form ensures your income, withholding, and tax liability are accurately reported, preventing potential notices, penalties, or refund adjustments from the state.
