Questions & Answers

What else do I need to include as nontaxable income?

If you have any other nontaxable income, include it here.

Common examples include:

  • workers' compensation benefits
  • your contributions to an employee elective deferral plan, such as a 401(k), 403(b), 457 deferred compensation or SIMPLE/SEP plan
  • contributions made to a dependent care account (as shown on your W-2) and/or medical expense account
  • nontaxable employee transit and parking expenses
  • veterans' benefits
  • nontaxable scholarships, fellowships, grants for education, including those from foreign sources, and tuition reductions
  • federal subsidies paid to employers for providing prescription drug coverage for their retirees
  • nontaxable pension and annuity payments, including disability payments. However, do not include distributions received from a Roth IRA or any pension or annuity that you funded exclusively, for which your contributions could not be taken as a federal tax deduction
  • lump-sum distribution reported on line 1 of Schedule M1LS
  • federally nontaxed interest and mutual fund dividends
  • income excluded by a tax treaty
  • rent reduction received for being a caretaker
  • military or clergy housing allowance
  • nontaxable military earned income, such as combat pay
  • strike benefits
  • the gain on the sale of your home excluded from federal income
  • debt forgiveness income not included in federal adjusted gross income
Do not include:
  • Minnesota property tax refunds
  • child support payments
  • a dependent's income, including Social Security
  • any state income tax refunds not included as income
  • the dollar value of food, clothing, food stamps and medical supplies received from government agencies
  • payments from life insurance policies
  • payments by someone else for your care by a nurse, nursing home or hospital
  • fuel assistance payments
  • IRA rollovers
  • gifts and inheritances
  • nontaxable Holocaust settlement payments

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