Minnesota income tax is corrupt

[mellowtigger]

I found 4 ways that Minnesota state income tax is vile beyond anything that the IRS could hope to achieve.

1) It's even more complicated.

As a single individual filing income tax, the IRS has only about 6 forms listed, most of them variations on the form 1040.  One of them happens to be the 1040EZ ("easy") that further simplifies the process.  I try really hard to qualify for that form, as it's the only form that I've ever fully understood.  As a single individual filing income tax, Minnesota has 22 forms listed as variations of the M1, with an additional 22 forms listed for other needs.  There is no EZ version.

2) You have to pay throughout the year.

If you fail to pre-pay your taxes by an amount more than $500, then you have to pay penalties.  (There's a form for that.)  Even the national government isn't that harsh.  They have a deadline for paying the money they want, sure, but they don't force you to pay ahead of schedule too!

3) They deliberately hide ways to get your refunds.

The most likely way a resident will get a refund is to get money back from the money (rent or mortgage payments) they paid towards state property tax that year.  That's a completely different form.  It's not listed with the income tax forms, even though your income level affects your eligibility.  In 2008, the TurboTax program produced this form for me.  In 2009, TurboTax had no idea what it was.  Minnesota somehow unhitched this refund form from its normal income tax forms.  Vile, just totally vile.

4) They keep your money for half a year before returning it.

This refund money is kept until August.  The IRS pays money owed as fast as they can process the requests.  Minnesota deliberately keeps it until August (if you're a renter) or September (if you're a homeowner).  Sleezebags!

So... I finished my state income tax forms last night.  Even though I should be getting about $139 back, I have to pay $202 now and then wait until August to get $341 back.  They steal my money for half a year and collect interest on it, then give the principal back to me.  And that's only because I went hunting for the proper form to fill out.  So very corrupt.  The IRS is saintly in comparison.

Comments

[pi3832.livejournal.com]

If it makes you feel any better, Louisiana has the 7th-highest total tax rate in the U.S., but is in the bottom five for roads, education, infant mortality, etcetcetc. At least your state government spends most of the money it takes from you on providing something for the public. AFAICT, most of my tax dollars go toward buying somebody a new bass boat.

[mellowtigger]

Yeah, Minnesota is pretty good about putting money into charter schools, parks, and health care. (Current economic downturn excepted, of course.)

[pangolin.livejournal.com]

Thanks for the PSA. I will endeavor never to move to Minnesota (not that it was really on my list anyway "dontcha know".

[mellowtigger]

Someone pointed out on Facebook that the IRS has a $1000 cutoff point where penalties begin if you fail to pre-pay your national taxes. I haven't seen that fee mentioned before, so apparently Minnesota isn't unique on that point. :(

The forms are still far too complicated, though.