State Taxes

M1SLC Instructions

Minnesota Student Loan Tax Credit can be claimed using M1SLC. This is a nonrefundable credit for the payments of interest and principal on eligible higher education loans. You can claim this state income tax credit to reduce tax liability by up to $500.

Fill out Schedule M1SLC and attach it to your state income tax return to get the benefits of the credit. Here is a line by line instruction on how to fill out M1SLC.

Line 1. Enter the total amount of student loan paid.

Line 2. Enter your federal AGI.

Line 3. Enter the amount found on Schedule M1NC Line 36.

Line 4. Add lines 2 and 3, and enter the results.

Line 5. Subtract $10,000 from the Line 4 and enter the results.

Line 6. Multiply Line 5 by 0.10 and enter the results.

Line 7. Subtract Line 6 from Line 1, and enter the results. (If the result is $0 or less, stop filling out the form.

Line 8. Enter the total amount of income you earned during the tax year. (If you don’t have earned income, you aren’t eligible for the credit as you don’t have tax liability.)

Line 9. Enter “0” if you did not file Schedule M1NC. If you filed Schedule M1NC, check the instructions.

Line 10. Add lines 8 and 9, and enter the results.

Line 11. Enter the lesser of the amount of qualified student loans used for paying postsecondary education or $5,000.

Line 12. Multiply line 11 by 0.10 and enter the results.

Line 13. Enter the amount of interest paid in 2020 on the higher education student loans.

Line 14. Add lines 12 and 13, and enter the results.

Line 15. Enter the money amounts from Line 7, line 10, or line 14 (whichever is least)

Line 16. Enter the credit you’re eligible.

Line 17. Enter the amount on Line 15 or 16, whichever is less

Line 18. Enter amount on line 17 if you’re a full-time resident. If you’re not a full-year resident and you’re filing a joint return, multiply the amount on Line 16 by the amount on Schedule M1NR Line 26 and enter the results.

Line 19. Add line 18 from the columns A and B, enter the results on Schedule M1C Line 6.

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