The Minnesota Department of Revenue has announced updates to the Renters Credit. If you are a renter in Minnesota, you should pay attention, because there are some big changes since last year.
What is the Renters Credit?
Minnesota offers the Renters Credit to help renters offset the cost of property taxes assessed as part of their rent. Long story short, homeowners get a Property Tax Credit, renters get a Renters Credit. The amount of the credit is based on your income, number of depends, and various other details. This credit can be worth up to $2,640 for the 2024 Tax Year, so it can be a significant benefit!
What’s changing?
Previously, to claim the Renters Credit you had to submit a separate form – the M1PR. Renters could generally file this at the same time as they filed their regular tax returns (since this required the CRP or Certificate of Rent Paid from your landlord – which is required to be provided to you by January 31st), but the refunds from this credit wouldn’t get to you until August or later. Under the new program, the credit is taken directly on the M1 (with schedule M1RENT attached). This means you will receive your credit along with the rest of your tax form, rather than waiting for August or later. With this, you will receive the credit quicker, and it’ll create less hassle if you owed money on the rest of your tax return and got a credit back from the Renters Credit.
What if I’m a homeowner instead of a renter?
Nothing changes for homeowners. The M1PR still exists, and is now used exclusively for homeowners. You will still need to wait until you receive your property tax bill (generally in March) before you can file your property tax return.
What if I rented for part of the year and owned a house for part of the year?
If you rented during 2024 and then owned and lived in your home on January 2, 2025, you’ll do both – you’ll use the M1RENT on the M1 for the portion of the year you were a renter, and you will complete the M1PR for the portion of the year you were a homeowner. If you owned first and rented second (meaning you did not own your home on January 2, 2025) you may only claim the renters credit.
What if I own my mobile home and rent the land it is on?
You’ll still do the M1PR to claim the property tax refund for homeowners. If you rented both the mobile home and the land it’s on, you can claim the renters credit.
Where can I learn more?
The Minnesota Department of Revenue has a page devoced to the new Renters Credit here: Renter’s Credit | Minnesota Department of Revenue
You can also pull up early version of the M1RENT here: 2024 M1RENT, Renter’s Credit and the M1PR here: 2024 M1PR, Property Tax Refund Return
Or you can contact your friendly local tax expert. If you’re in the market for help with filing your taxes, we’re here and happy to help! Stop by our Contact page today to schedule your complimentary Discovery Call.
