Category: States

Update on MN Direct Tax Rebate Payments for TY2021 – Online Portal Available To Update Address/Bank Account

24 Jul 23
Craig Smith
No Comments
Online portal available for eligible recipients of the one-time tax rebate who need to update their address or bank information.

Taxpayers who are eligible for the one-time tax rebate and need to update their address or bank information from what was on their 2021 tax return, are reminded to visit the online portal at taxrebate.mn.gov to update that information before 5:00 pm CST on Friday, July 28, 2023.

Eligible recipients who have not changed their address or banking information from what was on their 2021 income tax or property tax refund returns do not need to take any action.

There is no application for the one-time tax rebate payment. Only eligible rebate recipients who need to update their information need to use the secure online portal.

Taxpayers will not apply for this rebate payment. The department will use tax year 2021 individual income tax or property tax refund returns to determine eligibility and distribute these tax rebate payments in the early fall.

What do taxpayers need to do?

 If You… Then…
Met the eligibility requirements and your bank information or address have not changed since filing your 2021 return You do not need to take any action. We will deposit the refund to your bank account or mail a check to the address on your 2021 return.
Met the eligibility requirements and your bank information or address have changed since filing your 2021 return You will need to update your information with us. Update your information using the secure online portal.
Exceeded the income limits or did not file a 2021 return You do not qualify for this tax refund payment.

 

When will rebate payments go out?

Eligible recipients of the one-time tax rebate can expect to get their rebate payment in the early fall.

Who is eligible for the one-time tax rebate?

You are eligible if you meet all of the following requirements:

  • You were a Minnesota resident for part or all of 2021
  • You filed one of the following returns by December 31, 2022:
    • 2021 Form M1, Minnesota Individual Income Tax
    • 2021 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund
  • Your 2021 adjusted gross income (line 1 of Form M1 or Form M1PR) was:
    • $150,000 or less for married joint filers
    • $75,000 or less for all other filers
  • You were not claimed as a dependent on someone else’s 2021 Minnesota income tax return

Taxpayers who died before January 1, 2023, are not eligible.

Visit our website for one-time tax rebate eligibility requirements and additional information.

Where can Minnesotans find more information on other tax-related legislation?

Revenue is reviewing other legislation recently signed into law and is working to update the state tax filing systems to reflect changes made to Minnesota’s tax laws. For more information on other tax law changes, visit the Tax Law Changes page on our website.

Message from VA DOR – System Error – Letters Generated in Error Asking for Schedules

26 Jun 23
Craig Smith
No Comments

Vendors received the below messaging from Virginia June 23rd.

“Due to a Virginia Tax system issue, taxpayers who e-Filed Virginia Individual tax returns (760, 760PY, 763) between 5/23/23 and 6/9/23 may have received letters stating that they failed to provide required schedules (Schedule A, Schedule OSC, Schedule CR).  These letters were sent in error.  Your clients do not need to provide us with copies of any schedules submitted with their returns.  There may; however, be legitimate letters requesting missing attachments, other verification, etc..

For any additional questions, the taxpayer may reach out to our customer service at 804.367.8031

Note: Paper returns mailed in may also be impacted

We apologize for calls you may be receiving due to this issue.“

Minnesota Tax Law Changes Recently Signed Into Law [Update]

05 Jun 23
Craig Smith
No Comments

6/26/2023 -The recent Minnesota tax legislation increased refunds for the 2022 Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund (Form M1PR). If you already filed a 2022 Form M1PR, you may see a larger refund than originally claimed.

The income requirements have not changed for claiming either the Homestead Credit Refund or the Renter’s Property Tax Refund.

How do I get the increased refund?

  • We’re updating our systems to automatically increase refunds on previously filed returns. We expect to start issuing the larger refunds in mid-July for renters and mid-September for homeowners.

If you have not filed 2022 Form M1PR yet:

If you filed 2022 Form M1PR before June 14, 2023: 

  • It depends on how you filed your return.
If you filed as a Then
Renter, nursing home resident, or adult foster care resident You do not need to do anything. We will increase your Renter’s Property Tax Refund by 20.572% and send you the additional refund automatically.
Homeowner or mobile home owner, and you claimed a Special Property Tax Refund when filing You do not need to do anything. We will increase your Homestead Credit Refund by 20.572%, recalculate your special refund, and send you the additional refund automatically.
Homeowner or mobile home owner, and you did not claim a Special Property Tax Refund when filing Review our updated 2022 Form M1PR instructions to see if you qualify for the special refund. If you qualify, file 2022 Form M1PRX, Amended Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund, and complete the Special Refund section. For more information, see Amending a Property Tax Refund.
Homeowner or mobile home owner, and you do not qualify for the Special Property Tax Refund You do not need to do anything. We will increase your Homestead Credit Refund by 20.572% and send you the additional refund automatically.

6/15/2023 – The recent legislative changes to the M1PR are now live in the 2022 application. NOTE: MN DOR has indicated that NO amended returns should be filed for already accepted M1PR’s. MN will adjust already filed and accepted M1PR’s if eligible for the increased refund.

The updates to the M1PR are as follows:

  • M1PR, Page 1
    • Line 18, Renter’s Refund increased by 20.5%
  • M1PR, Page 2
    • Line 22, Homestead Credit Refund increased by 20.5%
    • Line 34 was changed from 12% to 6%
    • Line 38 (maximum special refund allowed) was changed from $1,000 to $2,500

Minnesota tax code changes were recently signed into law on May 24, 2023. Some of the changes relate to the 2022 M1PR and will be applied retroactively. Minnesota also indicated additional retroactive changes were signed into law that are still being reviewed by MN DOR. At this time, there is nothing for you or your taxpayers to do. All software vendors must wait to receive guidance from MN DOR before implementing any changes to the software. As additional information is released by MN DOR and updates are made to the software, this post will be updated to provide additional guidance as issued by MN DOR. You may also refer to the MN Tax Law Changes page for additional information by CLICKING HERE.

 

Update on MN Direct Tax Rebate Payments for TY2021

24 May 23
Craig Smith
No Comments

The below announcement was just released by the MN DOR. For additional details, keep reading or CLICK HERE.


Direct Tax Rebate Payments

One-Time Refund for Tax Year 2021

The Minnesota Department of Revenue will send direct tax rebate payments for tax year 2021 to eligible Minnesotans after a recent tax law update. The legislation, signed May 24, 2023, provides payments of:

  • $520 for married couples filing a joint return with adjusted gross income of $150,000 or less
  • $260 for all other individuals with adjusted gross income of $75,000 or less
  • Another $260 for each dependent claimed on your return, up to three dependents

You do not have to apply for this payment. We will use 2021 income tax or property tax refund returns to determine who is eligible and issue payments. We expect to send payments this fall.

Who is Eligible

You are eligible if you meet all the following requirements:

  • Were a Minnesota resident for part or all of 2021
  • Filed one of the following returns for that tax year:
    • Form M1, Minnesota Individual Income Tax
    • Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund
  • Filed your return by December 31, 2022
  • Reported adjusted gross income of $150,000 or less for married joint filers, or $75,000 or less for all other filers.

Note: Adjusted gross income is listed on line 1 of Form M1 and Form M1PR.

We will reduce payment amounts for part-year residents based on the percentage of the year they lived in Minnesota.

What Happens Next

We will determine eligibility and payment amounts based on your 2021 Minnesota returns. You do not need to do anything now.

IF YOU… THEN…
Met the income limits and your bank information or address have not changed since filing your 2021 return You do not need to take any action. We will deposit the rebate to your bank account or mail a check to the address on your 2021 return.
Met the income limits and your bank information or address have changed since filing your 2021 return You will need to update your information with us this summer. We will provide a secure way to update your information online, with details coming soon.
Exceeded the income limits or did not file a 2021 return You do not qualify for this tax rebate payment.

 

Delay in Acknowledgements: ME and NJ

25 Apr 23
Craig Smith
No Comments

Industry received two updates today from two state departments concerning acknowledgements.

Maine: We are experiencing a delay in processing electronically filed 1040ME returns due to the large volume we have received over the last week.  We are currently processing April 19th and 20th dates and should have all ack’s sent out and caught up by the end of the week.

New Jersey: We are behind in sending acks due to high volume we are expecting all acks to be delivered by the end of the week.

Message from GA: Delay in Acknowledgements

13 Apr 23
Craig Smith
No Comments

Software vendors received the below message from GA DOR.

“We are experiencing a delay in acknowledgements being sent.  Thank you in advance for your patience as we work to resolve this issue.“

Message from Utah: Delay in Acks (UPDATE)

30 Mar 23
Craig Smith
No Comments

4/10/23 – Latest from Utah.

“Good afternoon,

As of this morning, all submissions received prior to today (4/10) have been acknowledged. Please contact me if you are waiting on an acknowledgement from Utah.”


4/4/23 – Latest from Utah.

“Utah is still having trouble acknowledging approximately 1,200 MeF submissions. As previously mentioned, in most cases the returns have been accepted and processed but we have not sent an acknowledgement.

We have resolved the underlying issue to prevent it from reoccurring. We are investigating sending acknowledgments for the remaining 1,200 files. My tech team does not have an estimate on when this will be resolved.

We are expanding our state perfection period to 40 days to allow any returns that were rejected by the state to be corrected and resubmitted as timely filed.”


Software vendors received the below message from Utah yesterday evening.

“Utah is experiencing an issue sending acknowledgements to the IRS for some returns. This happened first on 3/17, then 3/23 through to today. In most cases the returns have been accepted and processed but not acknowledged. We are working to get acknowledgements sent on all Utah submissions. I’ll send a follow up email when this issue has been resolved.“

Message from GA: Delay in Acks

23 Mar 23
Craig Smith
No Comments

Software vendors received the below message from GA DOR yesterday evening.

“We are experiencing a delay in acknowledgements being sent.  Thank you in advance for your patience as we work to resolve this issue.“