The Minnesota tax changes went into effect July 1, 2021. These changes relate to unemployment benefits, Paycheck Protection Program (PPP) loan waiver and other retroactive provisions affecting the 2017-2020 tax years.
To help people cope with these changes, the Minnesota Department of Revenue (DOR) has updated Minnesota tax forms for the 2020 tax year.
If you filed a 2020 income tax return that included unemployment benefits or PPP loan waiver, DOR will either amend the return or ask you to change it.
If DOR can customize the return, they will send you a letter describing what they changed and what refund you may receive. DOR says they are committed to adjusting as many returns as possible.
If you need to make changes solely because of changes in Minnesota tax law, please wait to hear from the DOR before filing. DOR will let you know if your return will be adjusted or if you need to change it.
If you haven’t filed a 2020 declaration or applied for an extension, the updated forms are available to claim your recent unemployment exclusions and deductions and PPP loan waiver.
DOR will continue to review Minnesota forms for 2017-2019 tax years and provide updates as they become available.
Minnesota is the only state in the nation with a split legislature, as Republicans control the Senate and Democrats control the House of Representatives. During the 2021 legislature, the split government led to an increase in total spending, but many of the harmful political proposals by Governor Walz and the House Democratic majority were prevented from going into law thanks to Republicans in the House and Senate.
Omnibus Finance Laws: Although I have rejected many of the worst political proposals, I have still voted against most of the Omnibus Finance laws. This was mainly due to unfunded mandates and what I felt was an inappropriate increase in spending. There were three bills that I voted for, transport, education and agriculture, because they were the most bipartisan of the financial laws.
Government spending: The two-year budget approved and signed by Governor Walz was $ 52 billion – an 8% increase over the budget approved in 2019. The Minnesota state government will also receive nearly $ 2.9 billion in COVID-19 aid dollars from the federal government. This increase in spending is unsustainable and is a reminder that the legislature must commit to curb spending.
No Tax Hikes: Despite a $ 4 billion surplus, Democrats pushed for billions in tax hikes that would have made life more expensive for families in Minnesota of all income levels. Republicans stayed strong, halting all Democratic tax hikes and helping give tax breaks to businesses and unemployed Minnesotans.
End of Emergency Powers: House Republicans fought throughout the session and voted more than 20 times to end the governor’s emergency powers. The legislature finally voted to end the peace emergency during a special session. House Republicans will fight to limit the power of the Walz government and make permanent reforms to Chapter 12 to ensure we find the right balance between legislative and executive.
Stand Up For Law Enforcement: Republicans have successfully defeated numerous anti-police measures that would have made it difficult for law enforcement to do their job and protect our communities. We pride ourselves on standing with law enforcement and opposing the Defund the Police voices in the Democratic Party, which demonize the entire law enforcement profession.
Safety in Our Cities: Metro area crime is skyrocketing due to democratic leadership that is more focused on denigrating law enforcement than tackling the rise in murders, car thefts, and other crimes. House Republicans have the backs of our law enforcement agencies and will continue to propose solutions to hold criminals accountable and restore safety to our communities.
Lawmakers will return to St. Paul sometime in September to provide $ 250 million in federal COVID aid dollars to frontline workers as bonuses.
Please do not hesitate to contact me if you have any questions or concerns. I can be reached by phone at 651-296-6746 or email at [email protected].