Minnesota Unemployment tax law 2020

[rlmicke]

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?

[shirleyh88]

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).

[Akil C]

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.