IRS Says MN Frontline Workers Should Hold Off On 2022 Taxes

MINNESOTA — Some Minnesotans should hold off on filing their 2022 tax returns if they received a special inflation relief tax refund or payment from the state last year while the Internal Revenue Service sorts out whether it’s taxable, the agency has said.

Minnesota is one of 19 states that offered special payments or refunds to residents in 2022. "We are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers," the IRS said in a statement Friday.

Taxpayers in the affected states should hold off until they get more information from the IRS, the agency said.

More than 1 million of Minnesota's frontline workers received a bonus check of $487.45 in 2022.

The payment is not taxable in Minnesota and is not included in household income, according to the state's Department of Revenue.

However, what still needs to be determined if they are taxable at the federal level, Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, told The Associated Press.

Other states that offered relief in 2022 were Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, and Virginia.

If taxpayers file now, they may have to amend their return later this year.

"I think the IRS is trying to help people save another filing, if they had to do an amended return," Keith Hall, president and CEO of the National Association for the Self-Employed, told The AP.

The 2022 federal income tax filing deadline is Tuesday, April 18.

• Related: What To Know About Filing Your 2022 Tax Return

If you are not sure if you need to wait to file your taxes, Hall recommends you consult with a tax professional about your specific situation.

The Associated Press contributed reporting.