The Minnesota Legislature has concluded its 2023 session by passing a $72 billion state budget, which is now awaiting the signature of Governor Tim Walz.
The budget includes various provisions such as direct rebate checks, tax relief for seniors receiving Social Security benefits, and a new tax credit aimed at reducing child poverty
Under the approved budget, eligible taxpayers can expect to receive rebate checks of $260 per individual filer and $520 for married couples filing jointly, with an additional $260 per dependent, up to three dependents. This means that a family of five could receive up to $1,300. The rebates are available to married couples earning less than $150,000 per year and other filers earning less than $75,000 per year, without any phase-out thresholds.
Lawmakers have specifically targeted the tax relief measures towards lower- and middle-income Minnesotans, aiming to provide assistance to those most in need. The Minnesota Department of Revenue estimates that around 2.5 million households will qualify for the rebates based on their 2021 tax returns.
Payments are expected to begin this fall and will be made through direct deposit or mailed checks
Additionally, the budget introduces a child tax credit for low-income families, which researchers predict will reduce child poverty in Minnesota by one-third. The credit amounts to $1,750 per child and starts to phase out for families earning more than $35,000 per year. The Department of Revenue estimates that approximately 265,000 families will be affected by this change, and the credit will be available when they file their income tax returns next year.
Furthermore, the budget includes a partial repeal of the state’s tax on Social Security benefits. Couples earning up to $100,000 and individuals earning up to $78,000 will no longer be subject to the tax, increasing the percentage of seniors exempt from the tax from 50% to 76%.
READ ALSO: What Differentiates SSI Payments From SSDI Benefits – Social Security Upgrade