Minnesotans Face Changes in State Tax Laws

DULUTH - Many Minnesotans have been holding off on filing their state taxes because of big changes to tax credits. Last month, Governor Mark Dayton signed a $443 million tax cut bill giving Minnesota tax payers more money back on their state returns. Approximately one in ten people will benefit from the new credits. The biggest changes are coming to working families, and college students. The working family credit is for families earning $25,000 to $40,000 a year. If you qualify, you could get more than $300 dollars back. Some college students can claim up to $4,000 in tuition and deduct up to $2,500 on their student loan interest. A 23-year tax veteran at H&R Block says it’s strange for changes to happen mid-tax season. "Some of the credits allowable on the federal tax return were not allowed in Minnesota,” explained senior tax advisor, Arlene Franzel. “Minnesota is trying to more conform to the federal tax law."More than half of Minnesotans have already filed their state taxes, so with the changes you don't have to re-file, but the state will do one of three things. They’ll automatically adjust your return, and you'll get a refund check in the mail. You'll get a letter requesting more information on your return or you'll get a notice to file an amended return to get the credits. If you haven't filed yet, the changes don't really affect you. If you go to a tax professional they'll know how to handle the changes. If you use software like turbo tax, after today it will update automatically. Because of Dayton’s tax cut bill, Minnesota is returning more than $500 million to tax payers. The last day to file is April 15.