Minnesota's Department of Revenue has some advice for taxpayers: Please wait.
With 1 in 10 Minnesota taxpayers getting a tax break provided in the law Gov. Mark Dayton signed on Friday, the agency is going to need some time to make sure everyone is paying the right amount.
"This is a pretty complex task," said Revenue Commissioner Myron Frans. "This is not something you normally want to do this late in the filing season."
Not all of the tax breaks in the bill are retroactive, but the ones that are will benefit 22 categories of Minnesotans, from restaurants owners and nonprofit organizations to middle-income taxpayers. Low-income families, college students, parents who adopted children last year, educators who paid for classroom supplies and others will save $49 million in 2013 taxes because of the new law. That break will be shared by more than 250,000 taxpayers.
Because the tax changes were enacted only last week, the agency is asking taxpayers who could benefit to wait until April 3 to file their taxes. By then the agency, software vendors and tax preparers should have updated forms in place to process the tax breaks.
About half of all Minnesotans already have filed their tax returns, however. The Revenue Department said it would contact those filers about getting refunds if they are eligible to benefit from the new law. That process could take months, but the agency said most of those taxpayers would not have to file amended returns. The state will simply send checks to those who overpaid, or it will contact them for further information or if an amended return is needed.
Tax preparers bracing
Tax preparers said the phones have been ringing off the hook since the tax-relief law went into effect.
"We're getting 60 to 70 calls per day where we're basically telling people to calm down," said Lynda Mohs, owner of Mohs Tax Service in St. Paul.