Tax Benefits and Credits for Immigrants in Minnesota in 2025

Key Takeaways

• Minnesota allows ITIN filers, including undocumented immigrants, to claim multiple refundable tax credits in 2025.
• The Minnesota Child Tax Credit offers up to $1,750 per qualifying child, fully refundable for ITIN filers.
• Premium tax credits for health insurance exclude undocumented immigrants federally but may have state program options.

Immigrants living in Minnesota face many questions about which tax benefits and credits they can claim, especially as rules change from year to year. For 2025, Minnesota stands out as one of the most inclusive states when it comes to tax credits for immigrants, including those who file taxes with an Individual Taxpayer Identification Number (ITIN). This comparison will help you understand the main options—Minnesota’s Earned Income Tax Credit (EITC), the Minnesota Child Tax Credit, the Working Family Credit, property tax refunds, and premium tax credits—so you can see which ones might fit your situation best.

Let’s look at each program side by side, compare their requirements, timelines, and costs, and weigh the pros and cons for different groups. By the end, you’ll have a clear decision-making framework to help you choose the right credits for your family.

Overview of Tax Credits and Benefits for Immigrants in Minnesota

Minnesota has made big changes in recent years to include more immigrants in its tax credit programs. The most important update is that people who file taxes with an ITIN—including undocumented immigrants—can now claim the state Earned Income Tax Credit, the Minnesota Child Tax Credit, the Working Family Credit, and property tax refunds if they meet other requirements. This is not the case in every state, so it’s important to know how Minnesota’s rules work.

Key Programs Compared

We’ll compare the following options:

• Minnesota Earned Income Tax Credit (EITC)
• Minnesota Child Tax Credit
• Working Family Credit
• Property Tax Refund
• Premium Tax Credits (for health insurance)

Each program has its own rules, benefits, and steps for applying. Here’s how they stack up.

Minnesota Earned Income Tax Credit (EITC)

Who Can Apply?
– Low-income workers, including those who file taxes with an ITIN.
– You do not need to have a Social Security Number to qualify in Minnesota.
– You must meet income and other requirements, similar to the federal EITC.

How Much Can You Get?
– The amount is a percentage of the federal EITC.
– For 2025, the federal EITC maximums are:
– $8,046 for three or more qualifying children
– $7,152 for two children
– $4,328 for one child
– $649 for no children
– Minnesota’s state EITC is a set percentage of these federal amounts, and recent laws have increased the percentage for some groups.

Refundability
– The credit is refundable. This means you can get money back even if you owe no taxes.

Timeline
– File your state tax return for 2024 in early 2025.
– You must have an ITIN before you file. If you need to apply for one, use the IRS ITIN application page.

Cost
– There is no fee to claim the credit, but you may pay for tax preparation services if you need help filing.

Pros
– Available to ITIN filers, including undocumented immigrants.
– Can provide a large refund for families with children.
– Helps reduce poverty and support working families.

Cons
– You must meet income and other requirements.
– If you don’t have an ITIN, you must apply for one, which can take time.

Minnesota Child Tax Credit

Who Can Apply?
– Families with qualifying children.
– Available to all who file with an ITIN and meet other rules.

How Much Can You Get?
– Up to $1,750 per qualifying child for tax year 2024 (filed in 2025).

Refundability
– The credit is fully refundable. You get the full amount even if you owe no tax.

Timeline
– For advance payments, the deadline was April 15, 2025.
– If you missed the advance, you can still claim the credit when you file your 2024 tax return.

Cost
– No fee to claim, but you may pay for tax filing help.

Pros
– Open to ITIN filers, regardless of immigration status.
– Can be a big help for families with children.
– Refundable, so you get the money even if you don’t owe taxes.

Cons
– Must have a qualifying child and meet other requirements.
– Advance payment deadline has passed for 2024, so you must wait until you file your tax return.

Working Family Credit

Who Can Apply?
– Low-income workers, including ITIN filers.
– Similar rules to the state EITC.

How Much Can You Get?
– The amount varies based on income, family size, and other factors.
– It is designed to add to the EITC and give extra help to working families.

Refundability
– The credit is refundable.

Timeline
– Claim it when you file your state tax return.

Cost
– No fee to claim, but you may pay for tax help.

Pros
– Available to ITIN filers.
– Provides extra support for working families.
– Refundable.

Cons
– Amount can be small for some families.
– You must meet income and other requirements.

Property Tax Refund

Who Can Apply?
– Homeowners and renters who file with an ITIN and meet income and other requirements.

How Much Can You Get?
– The refund depends on your income and how much you paid in property taxes or rent.

Refundability
– The refund is paid even if you owe no tax.

Timeline
– Claim it when you file your state tax return.

Cost
– No fee to claim, but you may pay for tax help.

Pros
– Available to ITIN filers.
– Helps both homeowners and renters.
– Refundable.

Cons
– Amount depends on your income and property tax or rent paid.
– You must keep good records of your payments.

Premium Tax Credits (Health Insurance)

Who Can Apply?
– Through 2025, premium tax credits are more generous and available to more people in Minnesota.
– However, undocumented immigrants are generally not eligible for federal premium tax credits.
– State-specific health programs may have different rules.

How Much Can You Get?
– The amount varies based on your income and the cost of health insurance.

Refundability
– Not a direct refund, but a subsidy to lower your health insurance costs.

Timeline
– Apply through MNsure when you sign up for health insurance.
– File IRS Form 8962 with your federal tax return to claim the credit. You can find the form on the IRS website.

Cost
– No fee to apply, but you must pay your share of health insurance premiums.

Pros
– Helps lower the cost of health insurance for many Minnesotans.
– State programs may offer help even if you are not eligible for federal credits.

Cons
– Undocumented immigrants are not eligible for federal premium tax credits.
– Rules for state programs can be complex.

Side-by-Side Comparison Table

Pros and Cons for Different Situations

For Undocumented Immigrants Filing with an ITIN:
– Pros: You can claim the state EITC, Child Tax Credit, Working Family Credit, and property tax refund. These credits are refundable, so you get money back even if you owe no tax. This can make a big difference for families with children or low incomes.
– Cons: You are not eligible for federal premium tax credits for health insurance. You must have an ITIN, which takes time to get if you don’t already have one.

For Mixed-Status Families (some members have Social Security Numbers, others have ITINs):
– Pros: You may be able to claim both state and federal credits, depending on each family member’s status. Minnesota’s rules are more inclusive than many other states.
– Cons: The rules can be confusing, and you may need help to figure out which credits you can claim.

For Legal Permanent Residents and Citizens:
– Pros: You can claim all state and federal credits if you meet the income and other requirements.
– Cons: No major cons, but you still need to follow all the rules and file on time.

Recommendations for Specific Circumstances

• If you are an undocumented immigrant with children: Apply for an ITIN if you don’t have one, and claim the Minnesota Child Tax Credit and state EITC. These credits can provide thousands of dollars in refunds.
• If you are a renter or homeowner with low income: Claim the property tax refund. Keep records of your rent or property tax payments.
• If you need health insurance help: Check with MNsure to see if you qualify for state programs, even if you can’t get federal premium tax credits.
• If you are unsure about your eligibility: Contact the Minnesota Department of Revenue for guidance, or visit their official website for up-to-date information.

Step-by-Step: How to Claim State Tax Credits as an Immigrant in Minnesota

1. Get an ITIN: If you don’t have a Social Security Number, apply for an ITIN using the IRS ITIN application page.
2. File Your State Tax Return: Use your ITIN to file your Minnesota state tax return.
3. Claim All Eligible Credits: On your tax return, claim the Minnesota Child Tax Credit, Working Family Credit, state EITC, and property tax refund if you qualify.
4. Provide Documents: Include proof of income, residency, and qualifying children if needed.
5. Receive Your Refund: If you qualify, you’ll get a refund even if you owe no tax.

Policy and Political Context

Minnesota’s decision to include ITIN filers in these programs is part of a broader movement among some states to recognize the contributions of immigrants. According to analysis by VisaVerge.com, expanding tax credits to ITIN filers helps reduce poverty and supports the state’s economy, especially in sectors like agriculture and food processing where many immigrants work.

However, not everyone agrees. Some lawmakers, such as Senator Jordan Rasmusson, have called for rolling back these benefits, arguing that they should be reserved for citizens and legal residents. As of July 2025, these proposals have not passed, and the current benefits remain in place.

Economic and Social Impact

• Undocumented immigrants in Minnesota contribute about $222 million in state and local taxes each year.
• Expanding legal status could increase state and local tax revenue by $72 million.
• The EITC and Child Tax Credit lifted about 6.4 million people out of poverty nationwide in 2023.

These numbers show that immigrants are already making big contributions to the state and that tax credits can help families escape poverty.

Decision-Making Framework

When deciding which credits to claim, consider:

• Do you have an ITIN? If not, apply for one as soon as possible.
• Do you have children? If yes, the Child Tax Credit and EITC can provide large refunds.
• Are you a homeowner or renter? If yes, look into the property tax refund.
• Do you need health insurance help? Check MNsure for state programs, but know that federal premium tax credits are not available to undocumented immigrants.
• Are you a mixed-status family? You may be able to claim both state and federal credits, depending on each person’s status.

If you’re not sure, reach out to the Minnesota Department of Revenue or a trusted tax advisor.

Final Takeaways and Next Steps

• Minnesota is one of the most welcoming states for immigrants when it comes to tax credits.
• If you file with an ITIN, you can claim the state Earned Income Tax Credit, Child Tax Credit, Working Family Credit, and property tax refund.
• You must meet income and other requirements, and you need to file your taxes on time.
• If you need an ITIN, apply as soon as possible using the official IRS ITIN application.
• Check the Minnesota Department of Revenue for the latest rules and forms.

By understanding your options and following the right steps, you can make sure your family gets the support it deserves. If you have questions, don’t hesitate to contact the Minnesota Department of Revenue or MNsure for help.

Learn Today

ITIN → Individual Taxpayer Identification Number used by taxpayers without Social Security Numbers for filing taxes in the U.S.
Earned Income Tax Credit → A refundable tax credit for low-income workers based on earned income and number of qualifying children.
Refundable Credit → A tax credit that can result in a refund to the taxpayer even if no tax is owed.
Premium Tax Credits → Subsidies that reduce health insurance premiums; eligibility varies, excluding most undocumented immigrants federally.
MNsure → Minnesota’s health insurance marketplace where residents apply for health coverage and potential state premium subsidies.

This Article in a Nutshell

Minnesota stands out in 2025 by including immigrants who file with ITINs in key refundable tax credits like EITC and Child Tax Credit, offering significant financial support. Undocumented immigrants benefit from state credits yet remain ineligible for federal health insurance subsidies, emphasizing the importance of understanding eligibility rules.
— By VisaVerge.com