ST. PAUL, Minn. (KFGO/WCCO) – Minnesotans receiving a state rebate check will have to pay taxes on it.
The Minnesota Department of Revenue has confirmed that while the state won’t be taxing rebate checks from the State of Minnesota, the IRS will.
The amount will depend on the size of the rebate and the household income.
The state will be sending a 1099-MISC form to all rebate recipients to use when they file their 2023 tax returns.
“Taxpayers should use the information on this form when filing their 2023 income tax return,” the Department of Revenue said. “If they include this payment in their federal adjusted gross income, they should subtract it from their Minnesota taxable income on line 33 of Schedule M1M on their Minnesota return.”
Gov. Tim Walz is upset that the IRS plans to tax Minnesotans’ rebate checks. Walz told reporters Wednesday that the decision is B.S.
“And I spoke to the President’s Chief of Staff yesterday when this became clear,” Walz said. “Look, Minnesota’s being treated unfairly in this. They picked an arbitrary date to end the emergency on May 11th. The legislature did not get finished and signed them over until the 26th. So, we missed by 15 days. Every other state was afforded this. And they say, ‘well, we’ve got to have a red line in the sand.'”
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