Navigating the Numbers

Every homeowner wants to ensure they are getting all the tax benefits to which they are entitled, and this is where the M1PR Property Tax Refund comes into play. If you’re unfamiliar with it, you’re not alone. It’s probably the most frequently overlooked return by taxpayers. Minnesota projects that millions of dollars are not claimed each year.

1. What is the M1PR Property Tax Refund?

The M1PR, often referred to as the “Homestead Credit Refund,” is a program designed to give homeowners and renters a rebate on the property taxes they’ve paid, particularly if these taxes are a high percentage of their income.

2. Who is eligible?

There are two main categories of people who can apply:

Homeowners:

Can qualify in two ways:

1. Their household income is compared to the property tax paid for the following year. For example, a taxpayer would compare 2022 income to the 2023 property taxes. There are income limits to qualify this way.
2. The second way to qualify does not involve household income. It is by having an increase in property taxes of 12% or more from year to year.

Renters:

Their household income is compared to the rent paid on their Certificate of Rent Paid. The maximum income limit to qualify is much lower for renters compared to homeowners.

For both homeowners and renters, it’s essential to check the latest income limits and eligibility criteria as these can change year to year.

3. How do you apply?

To claim your M1PR refund, you need to fill out Form M1PR and submit it to MN Revenue. You can file online or complete a paper return and mail it in. Remember to keep a copy of your property tax statement or Certificate of Rent Paid (for renters) as these will be required.

4. When should you apply?

There’s a deadline for submitting the M1PR form, which typically falls in mid-August. But it’s a good idea to apply as soon as you receive your property tax statement or rent certificate to ensure you don’t miss out.

   Factors affecting the refund amount

• Many factors can influence the refund you might receive, including but not limited to:

• Your household income – this is adjusted for some exempt income and deductions taken so it is important to review the instructions when completing the M1PR
• The amount of property tax you will pay next year
• Your home’s value
• Improvement exclusions.
• The number of dependents in your household

Conclusion

The M1PR Property Tax Refund is a common refund missed by homeowners and renters. It can help offset the cost of your property taxes, especially if they constitute a significant portion of your income. Remember always to stay updated on eligibility criteria and submission deadlines to take full advantage of this benefit.

Tax laws are constantly evolving. While we aim to provide up-to-date insights as a CPA firm, it’s vital to consult with a tax professional before making decisions based on our content. Always seek professional advice to best navigate the intricate world of taxation.