Fillable Form M1wfc - Minnesota Working Family Credit

2013 Schedule M1WFC Instructions

Who is Eligible?

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

M1NR . However, to correctly determine

was born or died in 2013 and your home

your credit, you must first fully complete

If you are a Minnesota resident and are

was the child’s home for the entire time he

Schedule M1NR, by following the line in-

eligible for the federal earned income credit

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

structions, to determine what the amounts

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

would have been, and then follow the work-

nesota working family credit .

Enter the number of qualifying children in

sheet below to determine line 6 .

the space provided on Form M1, line 26 .

Part-year residents and nonresidents may

Line 7

also be eligible for the credit, which is

Penalty for Fraudulently

apportioned by the percentage of income

American Indians working and living

taxable to Minnesota .

on an Indian reservation and taxpayers

Claiming A Refundable Credit

with JOBZ business income

If you file a return that fraudulently claims

Before you can complete Schedule M1WFC,

The working family credit is based only on

a refundable credit, including the Min-

you must:

earned income taxable to Minnesota . There-

nesota working family credit, you will be

1 follow the steps in the instructions for your

fore, you must apportion your credit if you

assessed a penalty . The penalty is 50 percent

federal return to determine if you qualify

are a Minnesota resident and:

of the fraudulently claimed refund and is

for the federal EIC, and

• are an American Indian working and

in addition to the 50 percent penalty on the

living on a reservation and had earned

2 complete the appropriate federal EIC

understated tax .

Worksheet.

income not subject to Minnesota tax, or

Line Instructions

• claimed a subtraction for income from

Income requirements

Round amounts to the nearest whole dollar.

operating a qualified business in a Job

Except for the extended income range

Opportunity Building Zone .

below, eligibility requirements for the Min-

Line 6

nesota working family credit are the same as

Part-year residents and nonresidents

To apportion your working family credit,

for the federal earned income credit .

If your Minnesota gross income is below

follow the worksheet below to determine

the filing requirement, and you are filing

line 7 .

Extended income range. Due to federal

Form M1 to claim this credit, you should

changes that were not adopted by Minne-

have entered zero on line 23 of Schedule

sota, taxpayers who are at the higher end of

the income eligibility range for the federal

earned income credit and/or have three

or more children may not qualify for the

Minnesota working family credit (see chart

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

below) .

gross income is less than $10,000)

If either your earned income (line 1 of

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

Schedule M1WFC) or your Minnesota

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

adjusted gross income (line 3 of Schedule

M1WFC) is above the following amounts,

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

you do not qualify for the working family

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

credit .

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

Number of Qualifying

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

Children

Income Limit

decimal places) . If step 3 is more than step 4, enter 1 .0 . Also enter the

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

No children

$14,350

One child

$37,815

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

Two or more children

$42,963

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

Schedule M1WFC and on line 26 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . .

Information on Qualifying

Children

Worksheet for Line 7

Near the top of Schedule M1WFC, check a

box to indicate the total number of qualify-

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

ing children . Enter the requested informa-

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

tion for each qualifying child . If you have

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

more than two qualifying children, list only

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

two .

(carry to five decimal places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter the number of months the child lived

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

with you during the year . If the child lived

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

with you in the United States for more than

Schedule M1WFC and on line 26 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . .

half of the year but less than seven months,

Form M1wfc - Minnesota Working Family Credit - 2013 Page 2

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