Minnesotans eligible for renter’s credit won’t need to fill out a separate return starting in 2025

Minnesota renters who have been able to file for a property tax refund will have an easier time doing so starting with the upcoming tax season.

The Minnesota Department of Revenue says starting in 2025, the renter’s credit will no longer be filed as a separate property tax refund return and will now be claimed on the Minnesota Individual Income Tax return by those who are eligible to do so.

In addition, the renter’s credit will be part of the income tax refund amount and be applied to the amount owed on someone’s income tax return or be applied to other debts – and not be received as a separate payment in the late summer or early fall.

“Having the renter’s credit on the state income tax form will simplify filing for the around 300,000 renters who claim a property tax refund each year,” said Revenue Commissioner Paul Marquart.

When filing for the 2024 tax year in 2025, renters will use the new Schedule M1RENT (renter’s credit) along with Schedule M1REF (refundable credits) when they file with their individual income tax return to receive the credit.

Renters should include the Certificate of Rent Paid document they receive from their property owner or managing agent when filing.

However, the state says the change doesn’t affect homeowners, who will still need to use the M1PR form to file a property tax refund return for the homestead credit refund.

More information on the return can be found here.