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UNEMPLOYMENT BENEFITS: Reminder, Minnesota taxes benefits

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ROCHESTER, Minn. (KTTC) -- Despite having lost their jobs, and needing unemployment benefits some people are finding they owe money to the government when it comes to taxes.

With the pandemic putting millions of people out of work many turned to unemployment benefits to get through.

Certified Public Accountant and Business Advisor Jeffrey Reimer

However, Certified Public Accountant and Business Advisor Jeffrey Reimer said one thing stayed the same.

"Minnesota is taxing your un-employment benefits. They've always been taxable and 2020 is not an exception for that," Reimer said. "The federal government did include an additional amount. However, it's all considered part of the unemployment package and it is all taxable."

Reimer said there is something to pay attention to when signing up for benefits that would save you from having to pay a lump sum by the April deadline.

"When a person first applies for unemployment benefits, they are asked if they want to have any federal or state taxes taken out, to cover the benefits," Reimer said.

We asked people on Facebook how they're dealing with tax season this year.

"I have been out most of 2020 and I owe taxes with both state and federal. I did not think about taxes. I owe almost 1700 in fed and 500 in state. I don't know what I am gonna do since still on unemployment."

Facebook response

Another said even with taxes being taken out, this is the first time he's ever had to pay back money.

Ubah Ali

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