3 New Tax Laws For Minnesotans to Hate in 2024
It's a tradition like no other: tax season. The time of the year when we get to guess how much we're owed from/how much we owe to the federal and state governments, and hope we're right so we don't have to go to jail.
That's a bit hyperbolic, but that's what it can feel like. And to make things even more fun, there are 3 new Minnesota tax laws to maneuver through for the filing season.
That Rebate Check? TAXED.
The budget surplus netted Minnesotans a one-time rebate check of up to $1,300 last year. Noice. Minnesotans owe exactly zero tax dollars to the state of Minnesota. Double noice. However, because lawmakers didn't approve the rebates until after the COVID emergency expired, we get stuck with a federal tax bill from the IRS. In a rare show of bipartisanship, Governor Tim Walz and Representative Pete Stauber have both pressed the IRS to remedy the situation. In the likely event that one isn't reached, we'll owe between $26 and $286 to the IRS for those rebates.
Minnesota Child Tax Credit
It's not a tax that your kids have to pay; it's a credit of $1,750 per child for low-income families in Minnesota who made up to $35,000 last year. The credit phases down for family incomes up to $81,666, at which point it's eliminated. Columbia University researchers believe that this credit alone will slash child poverty in Minnesota by a third, which is a good thing!
Minnesota Social Security Tax? NOPE
TWO positive tax law changes? It actually happened. Single retirees earning up to $78,000 per year and retired couples earning up to $100,000 per year now pay precisely ZERO dollars in state taxes.
H/T: CBS News