Updated: 3:06 p.m.
Revenue Commissioner Paul Marquart, along with tax committee chairs at the Capitol, said Friday they’ll work to fix an error in a $3 billion tax law approved in May.
A drafting error resulted in outdated standard deduction rates making it into the law for the 2024 tax year. That means that married joint filers would see a deduction of $24,400 rather than the $27,650 rate adjusted for inflation. For single filers, it would be a $12,200 deduction instead of $13,825.
Marquart said that officials didn’t notice the mistake when they were putting together the massive tax package and only recently noticed the 2019 deduction rates had been included, rather than the updated ones.
MinnPost first reported the mix-up and noted that it could cost income taxpayers $352 million a year if it’s not corrected. The commissioner, Senate Tax Committee Chair Ann Rest, DFL-New Hope, and House Tax Committee Chair Aisha Gomez, DFL-Minneapolis, said in a news release they would write a correction.
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“Just because of the amount of this, we just thought it was right to get this out, be transparent about it and, you know, inform people of what the situation is,” Marquart told MPR News
Lawmakers could fix the law when they return to St. Paul next February and avert any impact to taxpayers before they file their 2024 taxes.
“There is no impact on taxpayers now. And we have the commitment that there will be no impact on taxpayers in the future,” Marquart said.
The tax law is also set to include new child tax credits, one-time rebate checks for more than 2.5 million Minnesotans and tax increases for some corporations and people who profit from investment earnings.