COVID-19 FAQs for Individuals

Does the reason I'm in Minnesota affect if I need to file a state Individual Income Tax for tax year 2020?  What if I'm in Minnesota due to COVID-19?

Generally, no. Minnesota full-year and part-year residents are required to file a Minnesota income tax return if their income meets the state’s minimum filing requirements. The filing requirement is the same even if you are in Minnesota due to COVID-19, except for:  

• Military members and their spouses stationed in Minnesota

• Individuals covered by income tax reciprocity agreements

For details, see Who Must File an Income Tax Return and Residents (Determining Residency).  

I’m temporarily telecommuting due to COVID-19. Will my Minnesota Individual Income Tax filing requirement for tax year 2020 be affected? 

It depends if you're a Minnesota resident, part-year resident, or nonresident.

• Minnesota residents: Your income tax filing requirements will not change solely because of telecommuting.

• Nonresidents or part-year residents: You may need to apportion your income based on the number of days you work from home. Nonresidents need to divide the number of days worked in Minnesota by the total number of days worked.

 For more information, see: 

• Income Tax Fact Sheet 1, Residency
• Income Tax Fact Sheet 2, Part-Year Residents
• Income Tax Fact Sheet 3, Nonresidents

Are the Minnesota Estate Tax filing and payment deadlines extended to July 15, 2020, as a result of IRS Notice 2020-66?

Yes. Under state law:

• The Minnesota Estate Tax filing deadline is automatically extended for either six months after the original due date or any extension granted by the IRS under Internal Revenue Code, section 6081, whichever is longer.

• The Minnesota Estate Tax Payment deadline is either nine months after the date of death or any extension granted by the IRS under I.R.C., section 6161

Federal estate tax returns and payments due between April 1, 2020, and July 15, 2020, have been extended to July 15, 2020, as a result of IRS Notice 2020-66. The Minnesota payment and filing deadlines for estates that do not have a federal filing or payment obligation are included in this extension. Interest payable begins to accrue starting on the original nine-month payment deadline for the Minnesota estate tax.

What if I underpay or cannot pay my tax by the due date?

Can I reschedule a payment if I need more time to pay?

Yes. We recognize the COVID-19 situation may cause financial challenges. If you do not need extra time, we encourage you to file and pay as soon as possible to help support our state's response to COVID-19.

If you need to reschedule a payment, follow the instructions below, based on how your payment was originally scheduled.

• Through our website: Go to the e-Services Payment System and select View or Cancel a Payment, by 5 p.m. Central Time on the scheduled payment date. Cancel your original payment. Then schedule a new payment through the system as you normally would.

• Through your tax software: Call us at 651-296-3781 or 1-800-652-9094 (toll-free) to cancel your original payment, at least three business days before the scheduled payment date. Then schedule or make a new payment by another method. For options, see Make a Payment.

Can taxpayers get an extension to file a 2019 Minnesota Individual Income Tax return by paying 90% of the tax due by July 15 (similar to IRS Notice 2020-18)?

Filers have until October 15 to file before we charge a late-filing penalty. They do not have to submit a separate form requesting an extension to file.

Filers can avoid a late-payment penalty on their 2019 return if they do all of the following:

1. Pay 90% of the tax due on or before July 15, 2020.

2. File their return by October 15, 2020.

3. Pay the remaining tax when they file the return.

Taxpayers can request relief from late-filing or late-payment penalties and interest if they have a reasonable cause or are negatively affected by the COVID-19 pandemic. See Penalty Abatement for Individuals.

Note: The due date for paying a tax is identified in statute, which has not changed. However, we will not assess any penalties or interest if an individual pays their 2019 individual income tax by July 15. 

If a taxpayer files by April 15, 2020, when will the statute of limitations for that return begin?

The statute of limitations begins April 15, 2020. See Statute of Limitations for more information.

If my child is distance learning, can I claim internet access costs – including a hotspot and data plan – for the K-12 Education Credit or Subtraction?

Internet service or access charges do not qualify. Hardware needed for internet access – such as hotspots, modems, and routers – qualify under certain limits.

For more information, see Qualifying Expenses.

I purchased a tablet for each of my children and a modem/router for distance learning. Can I claim this equipment for the K-12 Education Credit or Subtraction?

Yes. Personal computer-related hardware expenses qualify including a tablet, modem, or router. You may claim up to $200 for the subtraction and – if you meet income requirements – $200 for the credit. 

For more information, see K-12 Education Subtraction and Credit.

Will Minnesota let taxpayers base their first-quarter 2020 estimated income tax payments on their 2018 liability? 

Yes. Taxpayers may calculate their 2020 estimated tax payments on 75% of their 2018 liability. We encourage taxpayers who have filed a 2019 return to use their actual 2019 liability. For more information, see Our Response to COVID-19 (under Estimated Taxes). 

If I make an overpayment for tax year 2019 on July 15 and file my income tax return by October 15, will the overpayment apply to estimated payments for tax year 2020?

First-quarter estimated tax payments are due April 15, 2020. You can request to apply any refund on your 2019 tax return to your 2020 estimated taxes. However, if the refund results from a payment made after April 15, it will not prevent an Underpayment of Estimated Tax penalty on your 2020 return. The actual date of your payment will be used to calculate the penalty.

How do overpayments from tax year 2019 apply to estimated payments for tax year 2020?

First-quarter estimated tax payments for 2020 are due April 15, 2020.  If you request to apply your 2019 refund to tax year 2020 estimated payments, the refund is applied to the unpaid installments in the order they are due. If the refund results from a payment made after April 15, the actual date of your payment will be used to calculate the Underpayment of Estimated Tax penalty on your 2020 return.

When will the estimated payment tax forms for 2020 be available on the department website?

For instructions to calculate estimated tax payments for 2020, see Estimated Tax.

You can create a payment voucher to mail with your check or money order using our Payment Voucher System.

Will there be an impact on the underpayment of estimated tax penalties that are normally computed to April 15?

At this time, estimated tax payments for 2020 are due April 15, 2020. Taxpayers can request relief from penalty and interest for late payments if they have a reasonable cause or are negatively affected by the COVID-19 pandemic. See Penalty Abatement for Individuals or Penalty Abatement for Businesses.

Coronavirus Relief Fund (CRF) Payments from Local Governments

If local governments distribute CRF aid to individuals or families as emergency financial assistance, is it taxable income?

It is gross income to the recipient unless an exclusion or exemption applies. Because a tax exclusion or exemption was not provided by the CARES Act or state law for these payments, state and federal tax treatment will be determined by the IRS under existing law.

The Internal Revenue Code allows an exclusion for certain “disaster relief payments” to individuals. The COVID-19 pandemic was declared a federal disaster on March 13, 2020. If the assistance qualifies, it can be excluded. For details, see IRS Publication 3833 about disaster relief.

COVID-19 Economic Impact Payments

Are COVID-19 stimulus payments taxable?

No. COVID-19 Economic Impact Payments are not required to be paid back, and they are not included in the calculation of:

• Federal income
• Minnesota income
• Income for Minnesota’s property tax refund

For more information, see the IRS Economic Impact Payment Information Center.

Can I update my direct deposit information with you for my COVID-19 payment?

No. The IRS will issue COVID-19 Economic Impact Payments directly to individuals who qualify. The payment amount and method (check or direct deposit) will be based on your most recent federal tax return.

The Minnesota Department of Revenue does not have a role in issuing these or other federal payments.

Note: The IRS is providing a way to track your payment and update your direct deposit information with them. For details, see Economic Impact Payments on the IRS website.

Unemployment Compensation

Is the additional $600 weekly payment for Federal Pandemic Unemployment Compensation taxable income?

Yes. All unemployment compensation is taxable income.

Are state or federal taxes taken out of the additional $600 weekly payment?

Not currently, but that may change. For the latest information, go to the Minnesota Unemployment Insurance website (under "How do I get paid?").

If you do not have taxes withheld or pay estimated tax, you may owe more income tax than expected for 2020. You may also owe penalties and interest. For more information, see Estimated Tax.

Will the department start new enforced collection actions, such as levies and other seizures, during this pandemic?

Recognizing the financial impact of COVID-19, we have temporarily stopped issuing new:

• Levies from bank accounts, wages, or other income

• Professional license revocations

• Sales tax permit revocations

• Seizures of property

We may continue to take other actions to collect tax debts or other debts referred to the department. See Collection Information for details.