There are hundreds of thousands of residents in one state that will see tax refunds worth up to $584 by New Year’s Eve this year.
State residents in Minnesota are being given checks by the Minnesota Department of Revenue if they paid state taxes on unemployment benefits.
$10,200 in unemployment benefits became untaxed under the American Rescue Plan, which eliminated federal taxes.
The law was passed in March, so unfortunately many Americans had already filed their taxes.
The IRS ended up sending refunds to Americans that paid taxes on the first $10,200 of their unemployment.
Many states tax their unemployment benefits, but Minnesota opted to pay out refunds like the federal government.
442,000 have been processed of the 540,000.
Easier returns began being processed in Oct.
It is expected that the refunds will all be processed by the end of the year.
Many residents may not be aware of the change this year and will be pleasantly surprised with the refund.
How do I get the refund?
If you’re an eligible resident in Minnesota, you’ll see the refund automatically.
For those with banking details on file with the Department of Revenue, you’ll see a direct deposit. If not you’ll be issued a paper check.
8,000 residents needed to file an amended return to get the refund and should have been notified by letter in Aug.
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