How to Claim a Property Tax Refund in Minnesota

Whether you own or rent your home in Minnesota, you may be eligible to claim a property tax refund. The amount of the refund depends on your income and the property taxes you pay directly as a homeowner, or indirectly as a renter. If the property taxes you paid exceed a certain threshold percentage of your income, you can receive a refund for a percentage of the taxes over the threshold. The threshold increases and the percentage refund decreases as income increases.

According to a report by Karen Baker and Nina Manzi for the Minnesota House of Representatives, the average refund for all homeowners in 2009 was $742. The maximum refund for claims filed in 2011, based on property taxes payable in 2011 and 2010 income, is $2,370, and the maximum income threshold for homeowners is $99,239.

As a homeowner you are eligible for a property tax refund if your income is below the maximum threshold, you have been a full or part-time resident of Minnesota during the year, you are not a dependent, and your property is classified as your homestead. Homeowners can qualify for the regular property tax refund and a special property tax refund if their property taxes increased by more than 12%, and the increase is at least $100. The special property tax refund is not subject to an income limit and the maximum refund is $1,000.

Renters qualify for the property tax refund if their household income is less than $53,540. The maximum refund for renters is $1,520 for 2011.

Household income for purposes of the property tax refund includes your federal adjusted gross income plus certain nontaxable income such as Social Security and Railroad Retirement benefits, workers' compensation and disability benefits, nontaxable pensions, and the amounts you contributed to a 401(k) or other deferred compensation retirement account. It does not include child support, food stamps, or fuel assistance payments. You can claim a deduction for being age 65 or older or disabled and for the number of dependents you have.

To claim the property tax refund, you should file Form M1PR by August 15th. If you are a renter, you have to attach a CRP '" Certificate of Rent Paid. You landlord should give you this certificate by January 31st. You can file your return on paper or file electronically for a $7 fee.

According to the Minnesota Department of Revenue, you can file a return for a property tax refund up to one year after the due date. So, for example, if you did not file a return for 2009 you could still file by August 15, 2011.

Sources:
2010 Property tax refund forms and instructions '" Minnesota Department of Revenue
Form M1PR '" Property Tax Refund '" Minnesota Department of Revenue
Homeowners refund '" Minnesota Department of Revenue
Karen Baker and Nina Manzi, "Homeowner's Property Tax Refund Program" '" The Research Department of the Minnesota House of Representatives
Minnesota Property Tax Refund Forms and Instructions '" Minnesota Department of Revenue
Online software for filing your 2009 and 2010 property tax refund return '" Minnesota Department of Revenue
Property tax refund '" Minnesota Department of Revenue