MN Revenue Department to Start Sending Tax Refunds for PPP Loans and Additional Unemployment Assistance in Coming Weeks – WCCO
ST. PAUL (WCCO) – Businesses that received repayable payday loans from the federal government and Minnesotans who obtained additional unemployment benefits last year will begin to see state tax refunds in the coming weeks, the ministry said on Thursday. of Minnesota Revenue, after the legislature approved a tax break terminating their work.
About 560,000 tax returns are affected by the change, which was the last bill to clear the state capital during the special session. Governor Tim Walz signed the bill on Thursday.
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The new law provides tax breaks of $ 1 billion in total, including for small businesses that have taken out loans from the federal paycheck protection program. The federal government exempted them from federal taxes, but because Minnesota does not automatically comply with federal law, the legislature had to tax the stage.
Otherwise, the relief to help businesses keep people employed during the pandemic is considered taxable income in the state. Up to $ 10,200 in additional unemployment benefits are also tax exempt for people earning less than $ 150,000 per year.
A spokesperson for the Minnesota Department of Revenue said taxpayers did not need to take any action unless otherwise specified. The ministry expects most adjustments to be made automatically.
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If a taxpayer is eligible for an automatic adjustment, they will receive a letter from the tax administration outlining the changes and what they could expect from a refund. More complex tax returns may need to be amended, the spokesperson said, in which case the ministry will notify affected taxpayers again.
The broad tax package was a victory for Republicans, said Senate Majority Leader Paul Gazelka R-East Gull Lake, who saw tax relief as a top priority. The bill was the last deal negotiated in a special session with last-minute changes added before final adoption.
House Speaker Melissa Hortman said the DFL wanted fewer tax cuts, but welcomed the provisions on unemployment insurance and the cancellation of P3 loans.
“The tax cuts for workers who received unemployment compensation and the tax cuts for small businesses in the bill were really important because so many people have been so affected by COVID-19,” he said. she told reporters on Thursday.
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The tax deal also includes $ 250 million for frontline worker bonuses, though details of who will qualify and how much they will receive have yet to be determined. There will be a nine-member task force that will make recommendations to the legislature.