Changes to Minnesota Tax on Refunds

Changes to Minnesota Tax on Refunds

Beginning March 15, PERA will automatically withhold Minnesota state income tax on refund distributions unless you specifically request no taxes be withheld.

For Minnesota residents requesting refunds of amounts over $4,000, the state tax withholding will default to single and 0 allowances. Note, if no taxes are withheld due to the refund amount being less than $4,000, you may still owe taxes based on other income.

If you wish to withhold a different tax amount or elect no withholding, please complete Form W-4MNP, Minnesota Withholding Certificate for Pension or Annuity Payments and return it along with your completed application. Note: Claiming married with 0 allowances on this form will result in MN state income tax withheld only on the refund amount over $12,450.

You can find this form and more information at https://www.revenue.state.mn.us/withholding-annuities-and-pensions