Some Minnesotans are Eligible for Additional Tax Relief Right Now

Published On: 22nd June 2014

From the internet

Because of a tax measure that was passed during the tax filing season, some Minnesotans are able to take advantage of additional tax relief this year. The bad news is that the issuing of refund checks to those eligible Minnesotans is taking a very long time and it is expected to be a slow process.

It was reported by the Star Tribune that the state revenue department is in the process of reviewing over 250,000 state tax returns of Minnesotans who may qualify for the tax rebates. As of May 7th, the department had reviewed around 52,000 of the returns. It has been found that one in 10 filers qualify for the tax breaks.

It was reported by the Pioneer Press that some taxpayers who qualify for the tax breaks will receive refunds. Others will be notified and asked to provide specific pieces of information by June 27. Those that do not hear from the department by June 27 will not receive the new tax breaks.

The revenue officials are in the process of reviewing the income tax returns that were filed prior to the passing of the tax relief package. The package includes millions of dollars in retroactive tax relief. While the bill was pending, revenue officials requested that taxpayers delay filing their state income tax returns. When the bill was passed, the revenue department rushed the changes on the books as fast as possible because the completed tax returns started to come in. Over 1.1 million Minnesotans did wait to file their taxes after the new law went into effect on April 1. This means that their filings were under the new laws and would not require additional action. Those individuals received or will be receiving the correct refund amount under the new law.

The income tax changes also affect property tax refunds for renters and homeowners. Approximately $100 million in property tax relief has resulted in taxpayers needing to adjust their claims. Revenue officials will begin reviewing property tax refund applications after they complete the income tax rebates.

By the end of the legislative session, the entire dollar amount of the tax cuts equaled nearly a half billion dollars.

Each time, the votes were unanimous and it is fair to say that unanimous votes are rare at the state Capitol. One cut totaled $103 million and this is the tax cut that affects homeowners, renters, business owners, and farmers.

One representative was recorded as saying that the tax relief will be fuel for Minnesota’s economic expansion. At the same time, the state will be able to maintain a stable budget.

In keeping with the unity between the parties, one Minneapolis lawmaker was celebrating the fact that the bill would save farmers $18 million on their property taxes. He was recorded as saying that the farmers were getting squeezed due to the rising land values in relation to falling commodity prices.

The first set of cuts that occurred in March were mainly for bringing the state’s tax code in line with the deductions and credits that are made at the federal level. The additional relief was prompted by the states large budget surplus.