Minnesota Income Tax Exclusion for VA Dependency and Indemn…

Minnesota Income Tax Exclusion for VA Dependency and Indemnity Compensation

Minnesota Department of Revenue

Full exclusion from taxable income

Dependency and Indemnity Compensation, the monthly VA payment to eligible survivors of a service member who died in the line of duty or a veteran whose death resulted from a service-connected injury or disease, is tax free and is not taxed by Minnesota.

Check eligibility

How to apply

There is nothing to apply for. Leave your DIC payments out of the income you report on your Minnesota return.

What you'll need

Your VA award letter showing the DIC payments.

Eligibility

You are a Minnesota resident filing a Minnesota income tax return
You receive VA Dependency and Indemnity Compensation

Source

Official source

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