Minnesotans who received enhanced unemployment benefits or Paycheck Protection Program loans last year can expect to wait a little longer for tax relief from the state.
What's happening: Refunds for about 550,000 filers who paid state taxes on the extra $300 and $600 unemployment payments issued during the pandemic likely won't go out until September, a Department of Revenue spokesperson told Axios.
- A smaller number of refunds for Paycheck Protection Program loan recipients whose returns can be automatically adjusted should be issued later this month.
Context: State lawmakers voted this summer to waive state income taxes on PPP loans and up to $10,200 in extra federal unemployment benefits for those who made less than $150,000 for the year.
- But unlike the federal government and many other states, lawmakers here waited until after the filing deadline to pass a tax conformity bill.
Behind the delay: The Department of Revenue had to update 2020 tax forms and develop a system for processing and adjusting already-filed returns once the change was signed into law.
Of note: Some taxpayers might need to amend their returns to receive the benefits.
- Revenue will reach out to those filers this month to let them know.
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