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Renter and Property Tax Refunds

June 26, 2019

If you live in a rental property or primarily live on and own any homestead, you are likely entitled to a renters or property tax refund.

 

First, one must fill out a M1PR tax form to file for a renters refund and property tax refund. 17 percent of the rent paid by renters in 2018 is deemed a part of property taxes paid. Obtaining a Certificate of Rent Paid (CRP) by one’s landlord is required as well to verify rent paid by the tenant.

 

To qualify for the renters refund, one must:

  • Be a Minnesota resident or stay in their Minnesota residence for more than 183 days

  • Not be claimed on another tax return as a dependent

  • Have less than $61,320 household income for your 2018 return

  • Ensure the owner has valued property taxes of the building you rent from

 

To qualify for the property tax refund, one must:

  • Have a valid Social Security number to claim the Property tax refund

  • Primarily live in the homestead that you are claiming on Property tax

  • Have their property taxes paid or arranged to be paid by August 29, 2020

 

The two primary property tax refund programs in Minnesota are as follows:

 

 The Regular Homestead Credit Refund. To qualify for this refund, you must own and live in your home as of January 2, 2019 to claim the refund in 2018. Furthermore, in 2018, your household income must have been less than $113,150.

 

The Special Homestead Credit Refund. To qualify for this refund you must have lived at and owned your home from January 2, 2018 through January 2, 2019. Also, your home’s net property tax must have increased by more than 12 percent between 2018 and 2019 and exceeded $100. Lastly, the increase for the property tax must not have been due to improvements made to the property.

 

The Certificate of Rent Paid (CRP) shows how much rent was paid during the previous year and the amount of property taxes paid through rent. A renter must receive a CRP from their landlord no later than January 31st to file M1PR. It is important to remember each unmarried renter will receive a separate CRP even when living together.

 

In the event of a landlord refusing to provide a completed CRP, one may request a Rent Paid Affidavit (RPA) from the MN Department of Revenue. When dealing with an RPA, electronic submission is forfeited and a paper copy will be required that shows all receipts or cancelled checks as proof of rent paid. This must be completed even if a CRP is provided to you after the fact.

 

Information obtained from the Minnesota Department of Revenue

 

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