E-filing underway for state income taxes
The Minnesota Department of Revenue announced that the state income tax filing season is officially underway. The department is now accepting individual income tax returns for tax year 2008.
"This year, with a challenged economy, taxpayers are counting on their tax refunds more than ever," Minnesota Revenue Commissioner Ward Einess said. "By filing early, taxpayers can receive a much-needed boost when they need it the most."
Taxpayers that e-file, can do so beginning today and those who e-file their own returns, should visit the Minnesota Department of Revenue website for information on approved software products.
Additional e-file software products will be added to the department's website when they are approved.
"E-filing refunds are processed in three to five days, much faster than the average 30 days for paper returns," Commissioner Einess said. "E-filing returns can also increase accuracy, maximize allowable deductions, and allow taxpayers to receive the most rapid refund possible."
In addition to e-filing, taxpayers can also make payments electronically to control when the money is transferred.
Each year, Minnesota receives 2.6 million income tax returns. Last year, Minnesota led the nation with more than 1.8 million e-filed returns - or 71 percent, up 3 percent from 2006.
Electronic-filing programs are designed to help filers receive all the credits they qualify for which could lead to a larger refund.
Einess hopes the rapid refund generated by e-filing will eliminate the perceived need of a Refund Anticipation Loan (RAL). Offered by some tax preparers, RALs often charge very high interest rates and reduce a taxpayer's refund.
The department is also reminding taxpayers that last year's economic stimulus payment is not subject to income tax.