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Stimulus Update PUA FPUC Unemployment Benefits

Here’s your unemployment update for Saturday, February 27th, 2021

A bill introduced in the Minnesota House of Representatives could provide relief to Minnesotans facing surprise tax bills by forgiving state taxes on the extra unemployment benefits.

Rep. Zack Stephenson introduced the bill to allow Minnesotans to subtract the supplemental unemployment payments from their income in taxes after hearing from people.

He stated, “There’s been a lot of focus and discussion by my Republican colleagues on these PPP loan issues, and how that is creating unexpected tax bills, but candidly I’m just more concerned about working families seeing huge tax bills.”

Stephenson acknowledged his bill would be unlikely to pass before May after most Minnesotans have done their taxes.

However, if the bill gets passed that means taxpayers may have to file an amendment to get their money back.

Meanwhile, the Lousiana unemployment agency faces a lawsuit claiming “unlawful” unpaid benefits and errors.