Update on the 2021 tax bill

Minnesota Department of Revenue sent this bulletin at 07/02/2021 07:55 AM CDT

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Minnesota Department of Revenue

On July 1, 2021, the Minnesota Legislature passed, and Governor Tim Walz signed a 2021 tax bill. The bill includes tax changes related to unemployment compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive provisions affecting tax years 2018 through 2020. 

 

What happens next? 

Preparations for these tax law changes have been underway for several weeks. Now that a tax bill was signed into law, the Minnesota Department of Revenue will update tax forms and work with tax software providers on updating their systems to reflect these tax law changes. 

 

You do not need to take any action at this time and should not file any amended returns relating to retroactive provisions in the tax bill until forms are updated. We will communicate when updated forms are available. 

 

What if I received unemployment compensation or PPP loan forgiveness in a taxable year beginning in 2020? 

Depending on your return’s complexity, we will either adjust it and issue you a refund, or we will ask you to amend your return.  

  • If we can adjust your return, you will get a letter from us describing what we changed and any refund you may receive as a result. We are committed to adjusting as many returns as we can. 
  • If you will need to amend, wait until you hear from us before filing. We will let you know whether your return will be adjusted or if you need to amend. Look for this communication later this summer. 

 

How can I stay informed about tax law changes? 

We will provide updates, guidance, and resources on our website and through this email subscription service, including criteria that would require unemployment compensation or PPP recipients to amend. We will share updates as soon as they are available.  

 

What if I have questions? 

Visit our Tax Law Changes page to stay up to date on our guidance and subscribe to our email updates. 

You may also email your questions to TaxLawChanges@state.mn.us.