WHAT?! You’re Not Going to Like This – “Walz Checks” Tax
First of all - no one asked for this. In fact. some people were kind of upset about it, others were thinking... "hey, if the state wants to give me some cash, great!"
But then, here comes the kicker - they are going to be taxed!! We all heard that those checks would be tax free, and actually, they are in Minnesota. They will not be taxed in Minnesota, but that doesn't mean that they won't be taxed by Uncle Sam!
While Minnesota isn’t taxing the payments, the IRS has now determined that the payments will be taxed federally. Depending on Minnesotans’ income and the size of their rebate check, the federal tax could take between $26 and $286 of the rebate.
These one time payments were made earlier this year with an amount of $260 for individuals and $520 for a married couple filing jointly. And if you had any dependant children, you would also get an additional $260 up to three dependants. Meaning that some Minnesotans would receive up to $1300. Again, no one asked for this, these checks were just sent out, or directlly deposited into your account. And now - tax!
How much Federal tax could you expect to pay? Well that does vary depending on how much of an income you have ans what tax bracket you are in. They tax amount (Federal) will be anywhere from $26 up to $286.
In an interview yesterday, Governor Walz said he feels that Minnesotans are being treated unfairly compared to other states without a surplus. He flat out said that this is "bull****". And quite honestly, I couldn't agree more. Not that I think that money shouldn't be taxed normally, but when they decide to send out checks randomly, and that no one asked for, then expect a tax on top of it, that is exactly what Governor Walz said...
And again we see that "nothing is actually free".
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Gallery Credit: Katherine Gallagher