The IRS decision has been made on which state payments will be non-taxable. You can click here for the decision and a table of excludable state payments. The MN Frontline Worker payments are taxable on your federal return.
Payments from states provided as compensation to workers are includable in income for federal income tax purposes.
Many times there is just a stray entry that causes a reject error. Start by going back to your federal return interview and deleting all Frontline Worker Pay entries you previously made.
Next go back to be sure the income is no longer on your federal return.
- Down the left side of the screen, click on Tax Tools.
- Click on Tools.
- Under Other helpful links, click on View Tax Summary.
- Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
- You are verifying the amount is not included on line 8 and/or 10, Schedule 1.
- Down the left side of the screen, click Back to return.
To enter Minnesota Frontline Worker, follow these steps:
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click Show more to the right of Less Common Income.
- Select Miscellaneous Income, 1099-A.
- Select Other reportable Income.
- As a description enter MN Frontline Worker Pay.
In the Minnesota tax return interview, verify the entry is still there at the screen Frontline Worker Pay. It should be; but if not, re-add it there.
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