Tax Returns and Unemployment Insurance
Last week, the Minnesota Department of Revenue announced that they will begin processing tax returns that were impacted by unemployment insurance payments and the Paycheck Protection Program (PPP).
The introduction of these programs in the last year has dramatically complicated tax returns for many people. Our tax system was complex to begin with, but figuring out how PPP and unemployment payments affect them has just added to the mess. We made changes to our state tax laws to accommodate these programs, but one tax law change can often disrupt the system and make everything much more difficult to process.
The Department of Revenue has stated that they will start by processing 1,000 individual tax returns per week. As they adjust to the many tax law changes that have taken place, they hope to process 50,000 returns per week by the end of October.
I know this has been an incredibly frustrating process for so many of you. Earlier in the year, my office received so many calls asking how PPP and unemployment payments would factor into filing taxes. Fortunately, we are approaching the end of this bureaucratic nightmare.
Call or email me if you have any questions. My email address is Rep.Tim.Miller@house.mn and my office phone number is 651-296-4228.
Tim Miller