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If you claim exempt from Minnesota withholding, complete only Section 2 of Form W-4MN and sign and date the form to validate it. If you complete Section 2, you must complete a new Form W-4MN by February 15 in each following year in which you claim an exemption from Minnesota withholding.
Section 2 Minnesota Exemption You meet the federal requirements; you claim exempt from federal withholding on Form W-4; you had no Minnesota income tax liability in the prior year; you received a full refund of Minnesota tax withheld; and you expect to have no Min- nesota income tax liability for the current year.
There are no local taxes imposed in Minnesota.
You can claim exemption from withholding only if both the following situations apply: For the prior year, you had a right to a refund of all federal income tax withheld because you had no tax liability. For the current year, you expect a refund of all federal income tax withheld because you expect to have no liability.
The federal withholding tax has seven rates for 2021: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The federal withholding tax rate an employee owes depends on their income level and filing status. This all depends on whether youre filing as single, married jointly or married separately, or head of household.
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People also ask

Minnesota income tax withholding The personal income tax rates in Minnesota range from 5.35% to 9.85%, depending on how much you make and your tax filing status. As a Minnesota employer, youre tasked with withholding some of this tax from your employees wages.
Beginning with payments made on or after January 1, 2022, Minnesota requires withholding on annuity and pension payments unless the recipient asks you not to withhold.
Claiming exempt on W-4 does not mean an employee is exempt from Social Security and Medicare taxes. It also does not mean that the employee should not have taxable wages on their W2 form. The employee is exempt from taxes, but not taxable wages. All wages earned by the employee should be reported on the W-2.
We notify you by mail 60 days before we file an offset claim with the U.S. Treasury Department to take your federal tax refunds or government payments. This letter informs you: Which agency is filing an offset claim.
For tax year 2022, the states individual income tax brackets will change by 3.115 percent from tax year 2021.Minnesota income tax brackets, standard deduction and dependent exemption amounts for 2022. Single5.35% Up To$28,0806.80%$28,081 - $92,2307.85%$92,231 - $171,2209.85% Over$171,2203 more rows 14-Dec-2021

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