Fillable M1wfc, 2013 Minnesota Working Family Credit (Page 2 of 2) in pdf

2013 Schedule M1WFC Instructions

Who is Eligible?

Penalty for Fraudulently

must first fully complete Schedule M1NR, by

following the line instructions, to determine

Claiming A Refundable Credit

If you are a Minnesota resident and are

what the amounts would have been, and

eligible for the federal earned income credit

If you file a return that fraudulently claims

then follow the worksheet below to deter-

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

a refundable credit, including the Min-

mine line 6 .

nesota working family credit .

nesota working family credit, you will be

assessed a penalty . The penalty is 50 percent

Line 7

Part-year residents and nonresidents may

of the fraudulently claimed refund and is

also be eligible for the credit, which is

American Indians working and living on

in addition to the 50 percent penalty on the

an Indian reservation and taxpayers with

apportioned by the percentage of income

understated tax .

taxable to Minnesota .

JOBZ business income

The working family credit is based only on

Line Instructions

Before you can complete Schedule M1WFC,

earned income taxable to Minnesota . There-

you must:

Round amounts to the nearest whole dollar.

fore, you must apportion your credit if you

1 follow the steps in the instructions for your

are a Minnesota resident and:

Line 4

federal return to determine if you qualify

• are an American Indian working and

Credit Amount

for the federal EIC, and

living on a reservation and had earned

If your filing status is married filing joint, a

income not subject to Minnesota tax, or

2 complete the appropriate federal EIC

bill signed into law after the M1 instruction

Worksheet.

booklet was printed may affect your credit .

• claimed a subtraction for income from

Determine the amount for line 4 using your

operating a qualified business in a Job Op-

Income requirements

filing status and the attached table . You can

portunity Building Zone .

Except for the extended income range,

also find the table in the online M1 instruc-

eligibility requirements for the Minnesota

To apportion your working family credit, fol-

tion booklet or on our website at

working family credit are the same as for

low the worksheet below to determine line 7 .

www .revenue .state .mn .us .

the federal earned income credit .

Line 6

Extended income range. Due to differences

Part-year residents and nonresidents

between federal and Minnesota law, taxpay-

If your gross income is below the filing

ers who are at the higher end of the income

requirement, and you are filing Form M1

eligibility range for the federal credit and

to claim this credit, you should have entered

have three or more children will not receive

zero on line 23 of Schedule M1NR . How-

a working family credit (see chart below) .

ever, to correctly determine your credit, you

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 $10,000)

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Filing Status

Income Limit

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

Taxpayers with three or more children:

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

married-joint returns . . . . . . . . . .$48,300

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

other than married filing joint . . . 43,000

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

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 26 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . . .

ing children . Enter the requested informa-

tion for each qualifying child . If you have

more than two qualifying children, list only

Worksheet for Line 7

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 five decimal places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

was born or died in 2013 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 26 of Form M1 . . . . . . . . . . . . . . . . . . . . . . . . .

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

Enter the number of qualifying children in

the space provided on Form M1, line 26 .

M1wfc, 2013 Minnesota Working Family Credit Page 2

Related Articles

Related forms

Related Categories