Plan to Pay Taxes on the Minnesota Frontline Workers Bonus
We are approaching the end of the year, and that's when people start thinking about getting their tax information together.
We all know that getting a refund is a much better deal than having to pay in. The best scenario is when you don't owe anything and when you don't have a refund either. That means that you paid in the exact right amount in your income taxes. That would be awesome, but I've only heard of a few cases when that has happened.
Since the pandemic, there have been a few times that we have all received a stimulus bonus depending on your income. This money was tax free, which was nice.
Minnesota is giving out a bonus to frontline workers that had to continue to work during the pandemic. Originally the amount was to be North of $700. Since there were so many people that applied and qualified for the bonus, that amount has been decreased to just shy of $500 at $487 and some change. What's different this time is that this money will be federally taxable. You won't have to pay any Minnesota state taxes, but you will have to claim that on your federal taxes when you file at the beginning of the year.
This seems like an obvious thing since it is coming from the state, but not everyone will think about that and no one wants that surprise. The tax on it won't be that crazy of an amount, but it is something to remember when filing your Federal income taxes.
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