August 2021 Updates Regarding Big Changes to Minnesota Taxes

Last month, we mentioned that big changes were coming for Minnesota taxpayers. Basically, Governor Walz signed a tax bill in July that modifies income taxes regarding unemployment compensation, PPP loan forgiveness, and other stipulations that affected the 2017 through 2020 tax years.

The Minnesota Department of Revenue planned to provide updates as they become available. We got their most recent update in August, so we figured we’d give you a quick overview.

Latest Updates from the MN Department of Revenue

In order to avoid confusion, Minnesota intends on providing frequent status updates. Here are a few of their most recent ones as of August 30th:

• Updated 2020 tax forms are now available.
• The Department of Revenue is sending out letters, along with the necessary instructions, to the individual taxpayers who need to amend their returns. Almost 8,000 letters have been sent to this point.
• Over 2,000 taxpayers who filed returns with only PPP loan forgiveness changes have started receiving refunds.
• System updates are in development, but won’t be implemented until after a heavy testing phase. The goal of these updates is to automatically adjust over 540,000 impacted returns.

These are the updates we’re aware of so far, but more will be on the way. If you have any questions, please contact us at (952) 855-4520 and we’ll help clear up any confusion.

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Contact us today for a free tax services consultation. We have locations in Prior Lake, MN, and Ft. Lauderdale, FL, and can provide service to surrounding areas.

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