State tax returns are coming, but Minnesotans could still wait weeks

State tax refunds for Minnesotans who received enhanced unemployment benefits or Paycheck Protection Program loans during the pandemic should start hitting bank accounts as soon as this week.

The backdrop: The Minnesota Legislature struck a deal this summer to exempt income residents made from the two relief programs from state taxes.

• But lawmakers passed the change after the tax filing deadline, so the Department of Revenue had to come up with a system to process the refunds.

What to expect: Some PPP loan refunds have already been processed. But many taxpayers could still be waiting a while.

• There are about 540,000 impacted returns, but Revenue will only be able to manually process 1,000 a week to start. Officials hope to increase the pace to 50,000 a week by late October.