Homestead Credit Refund

Starting with Drake Tax 2024, Form M1PR is only used for taxpayers who can claim a refundable credit for property taxes paid on a primary residence in Minnesota. Make applicable entries on the Property Tax Refund tab in MN data entry.

Due to this change, only options H and M are available in the drop list on the M1PR screen.

• H for Homeowner (includes mobile homes if the taxpayer also owns the land that the mobile home is on)

• M Mobile homeowner (if the taxpayers owns the mobile home, but rents the lot that the home is located on).

  • For option M, be sure to complete the CRP screen for the lot rental. Check the box Mobile Home Lot at the bottom left of the CRP screen.

    Tip  If the taxpayer rents a mobile home and pays lot rent, they may qualify to claim the renter's credit instead.

Homeowners (both H and M) should make entries on the PROP screen to calculate the credit. If the taxpayer is eligible for the Homestead Credit Refund, MN 1PR is produced in View/Print mode.

This form can be e-filed with the M1 return (if that check box is marked on the M1PR screen), or separately. Form M1PR should be filed by August 15, 2025, but the final date to claim a 2024 refund is August 15, 2026.

There are various factors that are used to determine whether a taxpayer qualifies for a credit. For the complete instructions and qualifications, see the MN Homeowner's Homestead Credit Refund page and the M1PR Instructions.

Renter's Credit

Starting with Drake Tax 2024, renters will use the new Schedule M1RENT to compute the renter's credit instead. Make applicable entries on the CRP screen. The information is used to calculate the credit on MN RENT in View/Print mode. The credit flows to MN 1REF and is included in the amount on line 22 of Form M1.

The Schedule M1RENT is filed with Form M1. Form M1 is due by Tuesday, April 15, 2025.

There are various factors that are used to determine whether a taxpayer qualifies for a credit. For the complete instructions and qualifications, see MN Renters Credit page and the Schedule M1RENT Instructions.