Minnesota Tax Relief Bill: One-Time Payment Worth up to $1,300 to Eligible Residents

In a bid to provide economic relief to Minnesota households, the state Legislature has passed a $3 billion tax relief bill package that is awaiting Governor Tim Walz‘s signature (D-MN).

One-time payment worth up to $1,300 is to be sent out in Minnesota through the tax relief bill. (Photo: New York Post)

Minnesota Tax Relief Bill

As part of this comprehensive tax relief bill, eligible residents may receive a one-time stimulus check of over $1,000, along with several other tax benefits and credits.

The highlight of the tax relief bill is the issuance of rebate checks to approximately 2.5 million residents across Minnesota.

The exact amount of the stimulus check will depend on the filer’s income and the number of dependents they have. Single filers can expect a $260 check, while joint filers will receive $520.

In addition, Minnesota taxpayers can receive an extra $260 per dependent for up to three dependents, resulting in a maximum payment of $1,300 for eligible families.

However, it’s important to note that single filers earning $75,000 or more per year and couples earning $150,000 or more per year will not qualify for the tax relief rebate provisions, as the U.S. Sun reports.

According to the Washington Examiner, the tax relief bill also addresses certain tax burdens faced by seniors. It eliminates sales taxes on Social Security payments for joint filers earning less than $100,000 and for individuals or heads of households earning less than $78,000.

Furthermore, the bill includes measures to enhance education-related tax benefits.

The K-12 education credit will be expanded to provide a maximum of $1,500 per child. Additionally, a new child tax credit worth up to $1,750 per child will be established, benefiting families with children.

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Will the Minnesota Tax Relief Bill Pass Legislation?

Governor Walz has not yet indicated whether he will sign the legislation into law. However, he recently discussed the concept of wealth and whether a couple earning $150,000 annually can be considered rich.

In his remarks to CBS News Minnesota, Walz expressed that he does not view them as wealthy, but emphasized that a significant majority of Minnesotans, approximately 80%, earn less than that income threshold.

He underscored the importance of focusing on the well-being of children and highlighted the relatively affordable cost of living in Minnesota compared to other places.

While the tax relief bill offers several benefits, it also includes notable tax hikes.

For instance, it introduces a gas tax that is linked to inflation, imposes a 50-cent fee on deliveries over $100, introduces an additional 0.25% sales tax in Minnesota’s metro area to fund housing initiatives, and raises corporate taxes.

Additionally, high-earning single filers with incomes exceeding $600,000 per year and joint filers with incomes surpassing $800,000 per year will face increased tax obligations.

As Minnesota awaits Governor Walz’s decision on the tax relief bill, residents are hopeful that the one-time stimulus checks and other provisions will provide much-needed financial assistance during these challenging times.

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