MN Property Tax Rebate – something to consider when you retire

A heads up for retirees or those soon to retire. This year when I did my taxes using TurboTax (have used it for 10+ years) it asked if I wanted to submit for a property tax rebate. I don’t remember it asking before, so I went ahead and did it. I looked in to who qualifies for the rebate and I learned that since I retired almost 4 years ago, I qualified since my income dropped below the cutoff. So I was able to file for the previous year also. MN allows you to only go back 2 years. Got the rebates 2 weeks ago totaling ~$4,600.
But since I missed 2 years, I left ~$4,000 in the MN Dept of Revenue coffers. Oh well, at least I’ll be aware to do this going forward.

I get that every year too, adds up!!!

Property tax refunds and how the homestead break are applied is such a scam.

If you pay in more for taxes on a higher valued property, you are ineligible for the homestead exclusion also after a certain random value.

Some stupid politicians draw a line in the sand in Minnesota with arbitrary numbers to decide who should get property tax breaks, and who shouldn’t.

What if instead of a break for some and not others, we just lowered everyone’s property taxes on single family homes a small amount with the same net impact? Heaven forbid Minnefornia would consider something logical or fair.

Minnesota is redistribution of wealth state.

That said, great post and everyone should look for every tax dollar savings allowed to them.

I started doing my FIL taxes two years ago. He has a nice smaller house and lives on a fixed income (Pension + SS). I was surprised at how much he saved on his state property tax refund.

Brittman wrote:

I was surprised at how much he saved on his state property tax refund.

For me I get ~40% back. More ice fishing trips this winter.

I think you can file prior years. I would triple check that for $4-8k!!!

buckybadger wrote:

Property tax refunds and how the homestead break are applied is such a scam.

If you pay in more for taxes on a higher valued property, you are ineligible for the homestead exclusion also after a certain random value.

Some stupid politicians draw a line in the sand in Minnesota with arbitrary numbers to decide who should get property tax breaks, and who shouldn’t.

What if instead of a break for some and not others, we just lowered everyone’s property taxes on single family homes a small amount with the same net impact? Heaven forbid Minnefornia would consider something logical or fair.

Just some additional info for you all. For Taxes payable in 2024 the Homestead exclusion was caculated as 40% reduction in market value up to $76,000, or $30,400 of exclusion, the exclusion less declines as the market value increased to $413,800. At this point NO exclusion is given on the estimated market value.
For taxes payable in 2025, the state legislature adjusted the baseline values, max exclusion is $38000 at $95,000 of estimated market value, and the upper value limit was increased to $517,200, at which point no exclusion is given.

The problem with property taxes, is they are used to fund our local governments, and schools. Outside of Commercial or seasonal property, the state does not have a hand in those taxes.
So to lower our property taxes, residents need to be involved in their lake improvment districts, township, city, county and local school districts planning and budgeting. This is done by attending meetings and letting your voice heard. The local levies are what you are paying for with your property taxes.
The tough thing is, if levies are not lowered, but more homesteads are granted, more exemptions or special programs are enrolled in, that tax that those individuals/property owners save, is then just picked up by the rest of the taxpayers.

Anyfish2 wrote:

<div class=”d4p-bbt-quote-title”>buckybadger wrote:</div>
Property tax refunds and how the homestead break are applied is such a scam.

If you pay in more for taxes on a higher valued property, you are ineligible for the homestead exclusion also after a certain random value.

Some stupid politicians draw a line in the sand in Minnesota with arbitrary numbers to decide who should get property tax breaks, and who shouldn’t.

What if instead of a break for some and not others, we just lowered everyone’s property taxes on single family homes a small amount with the same net impact? Heaven forbid Minnefornia would consider something logical or fair.

Just some additional info for you all. For Taxes payable in 2024 the Homestead exclusion was caculated as 40% reduction in market value up to $76,000, or $30,400 of exclusion, the exclusion less declines as the market value increased to $413,800. At this point NO exclusion is given on the estimated market value.
For taxes payable in 2025, the state legislature adjusted the baseline values, max exclusion is $38000 at $95,000 of estimated market value, and the upper value limit was increased to $517,200, at which point no exclusion is given.

The problem with property taxes, is they are used to fund our local governments, and schools. Outside of Commercial or seasonal property, the state does not have a hand in those taxes.
So to lower our property taxes, residents need to be involved in their lake improvment districts, township, city, county and local school districts planning and budgeting. This is done by attending meetings and letting your voice heard. The local levies are what you are paying for with your property taxes.
The tough thing is, if levies are not lowered, but more homesteads are granted, more exemptions or special programs are enrolled in, that tax that those individuals/property owners save, is then just picked up by the rest of the taxpayers.

Ding Ding Ding.

I wish those in my area that got property tax refunds would at least write me a thank you letter.

Sounds like a reason to have a GOOD tax person and not do it yourself.
I am all for doing things yourself but when it comes to the ins and outs of knowing all tax laws and loopholes having someone who takes the time to know your life saves/ makes you money.

I found out I only missed the rebate for 2021. Don’t feel so bad now.

Netguy wrote:

I found out I only missed the rebate for 2021. Don’t feel so bad now.

File 2021 now, why not!??? I did a two minute scan of instructions and didnt see a cut off date for filing.

Dave, please post where you saw that. Online filing only lets you submit 2023 now. Deadline is Aug. 15 of the year after the year you want to submit for plus an additional year. So cutoff for 2021 was Aug 15, 2023.

Netguy wrote:

Dave, please post where you saw that. Online filing only lets you submit 2023 now. Deadline is Aug. 15 of the year after the year you want to submit for plus an additional year. So cutoff for 2021 was Aug 15, 2023.

Well, I can’t show you what I didnt find! But it looks like you found the deadline date. It could be that the 3 year limit was for amended returns and since you never filed, it doesnt apply.

I was rooting for you getting that dough

One more big Property Tax rebate no one takes advantage of is building a new home . My lot had a tax value of $400 before I built a house on it. After the first year the house was built my tax value was $600K. I did the tax rebate and back in 2008 when I filed for it I got the largest refund that year in the state. I know this because they state sent me a letter about something and I called and talked to the guy that told me this when I asked why more people do not file for the tax rebate. Also when building a new house take advantage of all the energy star appliance rebates and window and insulation rebates offered through the energy company’s. That netted me another $2600 that year.