AMERICANS will see a one-time direct payment worth up to $1,375 if a proposal passes in Minnesota.
The tax bill calls for Minnesota taxpayers to get payments between $225 and $1,375 as well as a tax cut on Social Security and a new family credit.
1
Around $1.25billion would be returned from the state’s $17.5billion budget surplus if the bill goes into effect.
It’s estimated around 2.5million taxpayers would qualify for the checks, which aim to support residents through times of high inflation and economic uncertainty.
HOW MUCH MONEY YOU’D GET
Under the state proposal, joint filers will see a $550 check, with an additional $275 available for each dependent.
The limit is set at three dependents, meaning you could earn as much as $1,375.
Read more about rebates
There are certain income requirements to earn the payments, however.
Single filers must make less than $75,000, while couples joint filing can have an income of $150,000 or less.
Beyond the direct payments, Minnesotans would see a new “millionaires” tax implemented on the top 0.8 percent of state earners if the bill passes.
Additionally, companies would face new offshore income reporting requirements.
Most read in Money
The state estimates the changes could bring in more than $1billion over the next two years.
“The pandemic laid bare the harsh realities of this economy for working-class and middle-class Minnesotans,” House Taxes Committee Chair Aisha Gomez, DFL-Minneapolis, said, according to The Duluth News Tribune.
“While corporations posted record profits and the rich became even richer, so many in our communities couldn't stay home.”
The state Democrats pushing the bill say it will effectively be the “largest tax cut in state history.”
PROPOSAL’S PUSHBACK
Not all are in favor of the direct payment proposal becoming a reality.
Specifically, many minority Republicans do not believe new taxes are necessary because Minnesota already has a high budget surplus, the largest in the state’s history.
In Minnesota, Democrats are also pushing for an additional fee for food delivery and Amazon shipments.
This would see shipments charge an extra 75 cent delivery fee.
Republicans in the state are questioning the need for the almost $10billion in new taxes, which includes more than $1billion in new payroll taxes for a paid family and medical leave program.
“The Democrats’ budget will lead to higher taxes now and even higher taxes into the future to support their aggressive government growth,” Senate Minority Leader Mark Johnson, R-East Grand Forks told the local newspaper.
“Democrats in St. Paul are failing their campaign promises of lowering taxes for Minnesotans.”
House Democrats are responding back, saying top earners don’t need a tax cut, and the bill would bring in more than $600million a year in revenue.
If approved, joint filers who make less than $100,000 would not pay any taxes on Social Security.
The same would be true for single filers with incomes less than $78,000.
Altogether, 280,000 returns would be affected.
MORE HELP AVAILABLE
Residents in several other states also have the chance to claim direct payments, depending on their circumstances.
California has approved two guaranteed income programs in El Monte and Sacramento.
The payments from the programs are meant to help low-income families afford food and utilities.
Eligible residents will earn $500 monthly for a year.
Meanwhile, Colorado is sending out money as part of its Property Tax, Rent, Heat Credit (PTC) Rebate.
Eligible individuals can receive up to $1,044 a year, and people who apply in 2023 could also earn up to a $1,000 refundable tax credit.
To qualify, your total income also cannot exceed $16,925 for single filers and $22,858 for married filing jointly.
Those who earn the payments must either be aged 65 and older or have a surviving spouse aged 58 and older.
The rebate is also available to disabled people of any age if they are unable to engage in employment for medical reasons.
Meanwhile, in Connecticut, a one-time relief check worth up to $1,000 is available this year.
Connecticut workers earned the payment from a $30million pot.
It's part of the Premium Pay program, or "Hero Pay," launched last spring by Governor Ned Lamont.
Kansas is also offering up to $700 for residents through a property tax relief program.
Plus, here’s the full list of three direct payments worth up to $3,284 going out in April.
