UNEMPLOYMENT BENEFITS: Reminder, Minnesota taxes benefits

February 24, 2021

Taxes

Reimer CPA Rochester MN

ROCHESTER, Minn. (KTTC) — Despite having lost their jobs, and needing unemployment benefits some people are finding they owe money to the government when it comes to taxes.

With the pandemic putting millions of people out of work many turned to unemployment benefits to get through.

However, Certified Public Accountant and Business Advisor Jeffrey Reimer said one thing stayed the same.

“Minnesota is taxing your un-employment benefits. They’ve always been taxable and 2020 is not an exception for that,” Reimer said. “The federal government did include an additional amount. However, it’s all considered part of the unemployment package and it is all taxable.”

Reimer said there is something to pay attention to when signing up for benefits that would save you from having to pay a lump sum by the April deadline.

Article Written By: Ubah Ali

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