No one knows yet because the state of MN has to work out all of the changes in the state laws and then work with the tax software companies to make changes to software.
Here is a link to what MN says about it:
Just got an email from the MN Department of revenue that they've updated their tax forms to reflect the law changes. How long before turbo tax updates and I can file my state return?
"Minnesota tax code changes were signed into law on July 1, 2021. The changes relate to unemployment compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive conformity provisions affecting tax years 2017 through 2020.
The Minnesota Department of Revenue updated Minnesota tax forms for tax year 2020 to reflect these changes.
If you or your clients filed a 2020 income tax return that included unemployment compensation or PPP loan forgiveness, we will either adjust the return or we will ask you to amend."
Two weeks later and still no turbo tax update. Turbo tax needs to get on the ball with this.
Has the state of Minnesota informed you that you need to amend the state tax return?
Minnesota Department of Revenue website - https://www.revenue.state.mn.us/tax-law-changes
If you need to amend (due to these law changes): Wait until you hear from us before filing an amended return. We'll let you know if we can adjust your return or if you need to amend it.
Haven't filed yet because I knew this would be a thing. Talked to a TT rep last week (before being hung up on by another rep who had no clue what I was trying to explain) and they said they're waiting on the forms from the state and once they receive it'll take a few days up update the site. No idea when they'd be getting the new forms.
@DoninGAFrom the state of Minnesota:
We've updated 2020 Minnesota tax forms and instructions to reflect state law changes enacted on July 1, 2021. We continue to review Minnesota forms for tax years 2017, 2018, and 2019.
The changes relate to unemployment compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive provisions affecting tax years 2017 to 2020.
Soooo-why hasn't Turbo Tax updated yet?
Just logged in and the online version is reflecting the changes! Immediately saw my refund amount had changed and when I go through the prompts it no longer asks about PPP forgiveness or unemployment compensation. YAY!
Tried to transmit my return and am getting this error message: "We could not e-file your return for the following reason: Our records indicate that you are not entitled to efile one or more formsets."
Took the advice from other forums where they said deleting the state return and starting over would allow the return to transmit. It did indeed work! But it made me pay another $50 for the return, which I already paid for when I filed my federal. So now I just need to work on getting a refund for the state return, and then I'll finally be done with this mess. Looking forward to finding a tax professional in my area and never filing through TT ever again! What a nightmare of a year.