Minnesota Revenue Dept. Still Assessing What Deal For Tax Relief On Jobless Benefits, PPP Means For Tax Returns

CBS Minnesota

May 18, 2021

Legislative leaders and Gov. Tim Walz on Monday announced a budget agreement that includes tax relief for small businesses that received federal loans, and Minnesotans who received extra jobless benefits in 2020. But the state’s tax agency says it’s still reviewing how it would implement any law change.

The proposal would exempt all forgiven Paycheck Protection Program loans from taxable state income for the more than 105,000 small businesses in Minnesota that benefitted from the assistance, which was designed to help people keep their jobs during the pandemic.

It would also make up to $10,200 in extra federal jobless benefits tax-free for Minnesotans who were out of work and made $150,000 or less last year.

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