I was confused when it came to taxes regarding the MN Frontline Worker Pay I received. I thought I had heard something about it not being taxed, but now I'm told it had to be claimed as federal income but not state. Will this require an amendment?
Yes, you should amend the Federal return to include the income that you missed.
As for State ... I don't know. The net amount on your existing Minnesota return is correct, but Minnesota starts with some of the Federal numbers, so Minnesota will likely see your amended Federal return and want to change your State return. The Minnesota return SHOULD show the Federal amount (including the Frontline pay), then it subtracts it out separately (line 29 of Form M1M).
Yes, you should amend the Federal return to include the income that you missed.
As for State ... I don't know. The net amount on your existing Minnesota return is correct, but Minnesota starts with some of the Federal numbers, so Minnesota will likely see your amended Federal return and want to change your State return. The Minnesota return SHOULD show the Federal amount (including the Frontline pay), then it subtracts it out separately (line 29 of Form M1M).
You will need to amend your federal return if you have already filed and your return has been accepted.
The Frontline Worker Pay should have been included in your federal adjusted gross income for federal tax purposes. However, it is not taxed by Minnesota so no need to amend the state return.
Visit the link below for instructions on how to amend your return in TurboTax:
I'm trying to update my federal taxes in Turbo Tax right now. Does anyone know which line item I should be using to input the MN Frontline Worker Pay? Would this go under the "Other Common Income" grouping and then "Tax Refunds"? I've entered it properly for State now I just want to go in and enter it for Federal so I don't miss anything.
Yes, for the Minnesota (MA) Frontline Worker Pay can be entered as follows on your federal return:
To report this income you can use the following steps.
Go to the Wages and Income section of TurboTax
It is not taxable on the MN state return. MN Frontline Worker Bill
Thanks, I went ahead and made the change. It increased my federal taxes (as expected), but I believe it also increased my state taxes, is this the expected outcome? Just want to make sure as I thought this was not to be taxed.
It should not be taxed on your state return so be sure to use 'Preview my return' which will allow you to also view your state return before you pay or file.
Using the Tax Tools:
I am in the same boat. How do we delete the $487 from our state return? I added it to m y federal. How do I delete it from state?
So its not just me. Can someone at Turbotax open a ticket and get this fixed so we can submit our taxes?
My wife just got an email from the State with the following information. Can someone at Turbo Tax give us guidance on how to do this?
Tax treatment of Frontline Worker Pay
The Minnesota Department of Revenue is contacting you about how to report Frontline Worker Pay on your 2022 tax returns. Because federal Forms 1099 were not issued for these payments, we wanted to share guidance on reporting the payment.
How do I report Frontline Worker Pay on my 2022 tax returns?
This payment:
Questions?
If you have questions about:
What do I do when I get to my state taxes then as it took it as taxable income for state as well? Do I report it as "had expenses for exempt income" under "except-related income"?
Or, how do I fix it after it has all been filled out. How do I go back and take the 487 out of my state income?
This lets you look at your state return, but it doesn't allow you to change anything.
I reported the 487 as miscellaneous 1099 on my federal, and it added it to my state return too. How do I take it out of there?
We are going to need someone from Turbo Tax to answer that as we are all in the same boat.
Have you gone through the entire State interview? Somebody else has mentioned it asked a question about the Frontline Worker pay.
I figured it out. On Federal claim it as other 1099 miscellaneous and then on the state return "prepare state" write down the amount you claimed on federal. It worked. $487.45
If you received the frontline workers pay in MN, it gets reported on your federal return under Miscellaneous Income as if you received a 1099-misc. That will include the income on your federal return. Then when you get to that section on the MN state return, you can enter the same amount which will subtract it on the state return. It is taxable on your federal return but nontaxable on your state return. @distant55
Likely a really dumb question...
Where exactly do I find Miscellaneous Income in my federal return?
In the left panel, click Federal->Wages and income-> scroll down to miscellaneous income
Edit--> other reportable income
Type in MN Frontline worker pay, and 487
Then click State return, and Prepare State Return. Do the whole thing over and it will prompt you if you did the frontline pay on your federal. Say yes, fill it out, and that's it
I got a message from Mn Dept of Revenue it’s only taxable in federal
I put my wife and I total down on state and not federal. Will I have just amend federal when accepted?
Wait until you have received your Federal refund before Amending your Federal return.
The Amended Return does not 'catch up' with your original return and correct it. It's processed separately and can take several weeks to complete.
What section in Turbotax do we enter this? I was thinking under Wages & Income- 1099MISC and Other Common Income
Instructions say:
How do I report Frontline Worker Pay on my 2022 tax returns?
This payment:
Thanks!
Would be a helpful update 😉 for guidance of those that received it.