Revenue Commissioner, House and Senate Tax Committee Chairs agree to pursue update to drafting error in the tax bill regarding the standard deduction amounts for tax year 2024

ST. PAUL, Minn. - The Minnesota Department of Revenue Commissioner Paul Marquart, Senate Tax Committee Chair Sen. Ann Rest and House Tax Committee Chair Rep. Aisha Gomez, announced an agreement today to pursue an update to a drafting error relating to the standard deduction amounts that was part of the recently passed tax bill.

The Commissioner and Chairs will pursue a correction to the tax bill in the 2024 legislative session. No taxpayers are impacted by this drafting error for the current 2023 tax year. If an update is made during the 2024 legislative session, no taxpayers would see an impact to their tax filing due to this drafting error.

Background

In 2019, the lawmakers doubled the standard deduction and set the amount for a married joint filer at $24,400 and a single filer at $12,200. The law directs the commissioner for each subsequent year to adjust those amounts for inflation. After four years of inflation adjustments, the 2023 standard deduction for a married joint filer is $27,650 and $13,825 for a single filer.

The tax legislation signed into law in May inadvertently used the 2019 standard deduction amounts for the starting point in tax year 2024 instead of the inflation adjusted amounts of $27,650/$13,825, eliminating four years of inflation adjustments. Without updating this provision, filers would see their taxable income increase when filing their 2024 taxes.

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