When should Minnesotans expect tax refunds passed in the state budget?
The budget passed by the Minnesota Legislature and signed by Gov. Tim Walz last week included hundreds of millions of dollars in tax relief for businesses that received federal Paycheck Protection Loans and individuals who collected unemployment checks during the pandemic. Now, the Minnesota Department of Revenue is figuring out exactly how to dole all that money out. Taxes were due in mid-May, so many of the roughly 560,000 individuals eligible for tax breaks likely already filed their returns, while others filed for extensions. In new guidance released last week, the Minnesota Department of Revenue says Minnesotans should not file any amended returns yet. First, state officials need to update tax forms and work with tax software providers on changing their systems to reflect the new law changes. The department will communicate with taxpayers who are eligible once the forms are updated. Some taxpayers will be automatically or manually refunded by the department, depending on the complexity of their tax return. People who received both a PPP loan and collected unemployment checks may have to fill out an amended return. In either case, Department of Revenue officials are asking taxpayers to wait to hear from them. Notice will come in the form of a letter later this summer letting Minnesotans know their next steps.