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rlmicke
New Member

Minnesota Unemployment tax law 2020

It looks like Minnesota put something into effect in July about unemployment being taxable or not.  Do you know if there is a limit to this like there was on Federal tax law where if you made over $150,000 adjusted income you don't receive a refund?

2 Replies
shirleyh88
Employee Tax Expert

Minnesota Unemployment tax law 2020

Starting in July 2021, Minnesota is now in full conformity to the $10,200 unemployment insurance compensation exclusion. Since it is now conforming to the federal law related to unemployment compensation exclusion, I believe that the $150,000 threshold of modified adjusted gross income (MAGI) applies, which means that you are eligible to exclude up to $10,200 unemployment compensation that was received in 2020 if your MAGI was less than $150,000 (this threshold stays the same for all filing statuses - even if you are married and filing a joint return).

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Akil C
Employee Tax Expert

Minnesota Unemployment tax law 2020

Hi rlmicke!

Thanks for your question! Yes, Minnesota has conformed to the federal unemployment exclusion law. So all related federal limits would apply at the state-level as well.

 

Please let me know if this answers your question or if I can be of further assistance. Thanks! Akil C. 

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