MN’s Revenue Department to Start Sending Tax Refunds for PPP Loans and Additional Unemployment Assistance in the Next Few Weeks – WCCO

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ST. PAUL (WCCO) – The Minnesota Internal Revenue Service said Thursday that after the legislature previously signed off the tax break package, companies that received forgiving payroll loans from the federal government and Minnesotans who received additional unemployment benefits last year will begin receiving state tax refunds. in the next few weeks. finishing their work.

The change affected about 560,000 tax returns, which was the last bill introduced to the State Capitol during a special session.… Gov. Tim Waltz signed into law on Thursday.

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The new law provides for tax breaks totaling $ 1 billion, including for small businesses that have borrowed under the federal payroll protection program. The federal government exempted them from federal taxes, but because Minnesota does not automatically comply with federal law, the legislature should have taxed the move.

Otherwise, helping businesses keep people at work during the pandemic is considered taxable income in the state. Additional Unemployment Insurance Benefit of up to $ 10,200 is also tax deductible for people earning less than $ 150,000 a year.

A Minnesota Internal Revenue Service spokesman said taxpayers do not need to take any action unless otherwise indicated. The Department expects most of the adjustments to be made automatically.

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If taxpayers are eligible for an automatic adjustment, they will receive a letter from the IRS describing the changes and what they can expect from the refund. The spokesman said that more complex tax returns may need to be amended, in which case the department will again notify the affected taxpayers.

The sweeping tax package was a Republican victory, said Senate Majority Leader Paul Gazelka, a spokesman for R-East Gull Lake, who counted tax incentives as a top priority… The bill was the last deal negotiated in a special session with last minute changes before the final transition.

House Speaker Melissa Hortman says the DFL wanted smaller tax cuts but welcomed provisions on unemployment insurance and PPP loan forgiveness.

“The tax cuts for workers who received unemployment benefits and the tax cuts for small businesses in the bill were really important because COVID-19 has affected so many people so hard,” she told reporters Thursday.

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The tax deal also includes $ 250 million in bonuses to advanced workers, although the details of who is eligible and how much they will receive remain to be worked out. A nine-person working group will be set up to present recommendations to the legislature.

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