Schedule M1wfc - Minnesota Working Family Credit

2014 Schedule M1WFC Instructions

Who is Eligible?

Line 7

Enter the number of qualifying children in

American Indians working and living on

the space provided on Form M1, line 25.

If you are a Minnesota resident and are

an Indian reservation and taxpayers with

eligible for the federal earned income credit

JOBZ business income

Penalty for Fraudulently

(EIC), you may also be eligible for the Min-

Th e working family credit is based only on

Claiming A Refundable Credit

nesota working family credit.

earned income taxable to Minnesota. Th ere-

If you fi le a return that fraudulently claims

Part-year residents and nonresidents may

fore, you must apportion your credit if you

a refundable credit, including the Min-

also be eligible for the credit, which is

are a Minnesota resident and:

nesota working family credit, you will be

apportioned by the percentage of income

• are an American Indian working and

assessed a penalty. Th e penalty is 50 percent

taxable to Minnesota.

living on a reservation and had earned

of the fraudulently claimed refund and is

income not subject to Minnesota tax, or

Before you can complete Schedule M1WFC,

in addition to the 50 percent penalty on the

you must:

• claimed a subtraction for income from

understated tax.

operating a qualifi ed business in a Job Op-

1 follow the steps in the instructions for your

Line Instructions

portunity Building Zone.

federal return to determine if you qualify

Round amounts to the nearest whole dollar.

for the federal EIC, and

To apportion your working family credit, fol-

low the worksheet below to determine line 7.

2 complete the appropriate federal EIC

Line 6

Worksheet.

Part-year residents and nonresidents

If your gross income is below the fi ling

Income requirements

requirement, and you are fi ling Form M1

Except for the extended income range,

to claim this credit, you should have entered

eligibility requirements for the Minnesota

zero on line 23 of Schedule M1NR. How-

working family credit are the same as for

ever, to correctly determine your credit,

the federal earned income credit.

you must fi rst fully complete Schedule

Extended income range. Due to diff erences

M1NR, by following the line instructions,

between federal and Minnesota law, taxpay-

to determine what the amounts would have

ers who are at the higher end of the income

been, and then follow the worksheet below

eligibility range for the federal credit and

to determine line 6.

have three or more children will not receive

a working family credit (see chart below).

If your earned income (line 1 of Schedule

M1WFC) or your federal adjusted gross

Worksheet for Line 6 (for nonresidents and part-year residents whose Minnesota

income (line 3 of Schedule M1WFC),

gross income is less than $10,150)

whichever is higher, is above the following

amounts, you do not qualify for the Min-

1 Line 11, column B, of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

nesota working family credit.

2 Line 22, column B, of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxpayers with three or more children:

3 Subtract step 2 from step 1. (If result is zero or less, stop

here. You do not qualify for the credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Filing Status

Income Limit

4 Line 24 of Schedule M1NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

married-joint returns

$49,100

other than married fi ling joint

43,700

5 Divide step 3 by step 4 and enter the result as a decimal (carry to fi ve

decimal places). If step 3 is more than step 4, enter 1.0. Also enter the

Information on Qualifying

result on the space provided on line 6 of Schedule M1WFC . . . . . . . . . . . . . .

Children

6 Amount from line 5 of Schedule M1WFC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Near the top of Schedule M1WFC, check a

7 Multiply step 5 by step 6. Also enter the result on line 6 of

box to indicate the total number of qualify-

Schedule M1WFC and on line 25 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . .

ing children. Enter the requested informa-

tion for each qualifying child. If you have

Worksheet for Line 7

more than two qualifying children, list only

two.

1 Federal adjusted gross income (from line 3 of Schedule M1WFC) . . . . . . . . . .

Enter the number of months the child lived

2 Earned income that is not taxable to Minnesota . . . . . . . . . . . . . . . . . . . . . . . .

with you during the year. If the child lived

3 Subtract step 2 from step 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

with you in the United States for more than

4 Divide step 3 by step 1 and enter the result as a decimal

half of the year but less than seven months,

(carry to fi ve decimal places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

enter “7” in the space provided. If the child

5 Amount from line 5 of Schedule M1WFC . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

was born or died in 2014 and your home

6 Multiply step 5 by step 4. Also enter the result on line 7 of

was the child’s home for the entire time he

Schedule M1WFC and on line 25 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . .

or she was alive during the year, enter “12. ”

Schedule M1wfc - Minnesota Working Family Credit - 2014 Page 2

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