Minnesota Working Family Credit
Last updated August 2026
Minnesota's Working Family Credit is money at tax time for lower-income workers, and its rules changed recently in a way worth knowing. After the 2023 rewrite, it is no longer a flat percentage of the federal Earned Income Tax Credit. It now equals 4 percent of your earned income, up to a maximum of $379.
The best part is that it is refundable. You receive the credit even if you owe no Minnesota income tax, so it can come back as a refund rather than only reducing a bill. For a worker with little tax liability, that is real cash.
It is modeled on the federal earned income credit but computed under Minnesota's own formula, so qualifying for the federal credit is a good sign but the state amount is figured separately. You claim it on Schedule M1CWFC, the combined Minnesota Child and Working Family Credits schedule, filed with your state return.
A few people are ruled out. You cannot claim it if you were a full-year nonresident, are claimed as someone else's dependent, had the IRS restrict your federal EITC, or file married-separately without qualifying children.
The credit shares a phase-out with Minnesota's Child Tax Credit, beginning at $31,950 of income for single filers or $37,910 for married filing jointly. Above those points the credit gradually shrinks, so lower-income workers get the most.
Because the Working Family Credit and the Child Tax Credit ride on the same schedule, a working parent should claim both. Free filing help is available through Volunteer Income Tax Assistance sites in season; dial 2-1-1 to find one.
Updated August 2026 Program details can change — confirm with the program directly.
Who qualifies
- Working Minnesota residents with earned income below the program's limit, generally along the lines of the federal Earned Income Tax Credit
- You file a Minnesota income tax return and complete Schedule M1CWFC; the credit is refundable, so it can come back as cash
You may qualify. The program makes the final decision.
How to apply
- 1
File your Minnesota income tax return, even if your income is low.
- 2
Claim the Working Family Credit on Schedule M1CWFC.
- 3
If you have children, claim the Child Tax Credit on the same schedule.
- 4
Need help? Dial 2-1-1 to find free VITA tax preparation nearby.
What the application looks like
Common questions
How much is the Working Family Credit?
4 percent of your earned income, up to a maximum of $379. It is refundable, so you get it even if you owe no Minnesota tax.
Is it still a percentage of the federal EITC?
No. The 2023 law replaced that with a 4-percent-of-earned-income credit, capped at $379, computed under Minnesota's own formula.
How do I claim it?
On Schedule M1CWFC, the combined Minnesota Child and Working Family Credits schedule, filed with your state return.
Who cannot claim it?
Full-year nonresidents, people claimed as another's dependent, those whose federal EITC was restricted by the IRS, and married-separate filers without qualifying children.
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