Get your taxes done using TurboTax

I am confused as to where the Minnesota Tax Rebate Payment has been reported.

It sounds like the Minnesota state tax return is not able to find the payment reported in the Federal 1040 tax return.

Which 'income summary' is reporting the payment and Schedule C income as zero?

Are you saying that the Minnesota Tax Rebate Payment is reported on Schedule 1 line 3 or Schedule 1 line 8?  If line 8, which line 8?

If the Minnesota Tax Rebate Payment is listed under your self-employment income, the Minnesota state income tax return may not be able to find the income and give you the reversal on the Minnesota state income tax return.

The Minnesota payments are taxable income on the Federal 1040 tax return but not subject to self-employment income.

Information on the Minnesota Direct Tax Rebate Payments may be found here.

The payment is not taxable income on the Minnesota state income tax return.  Follow these steps to report the payment reported on IRS form 1099-MISC.

• 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 Direct Tax Rebate Payment.

In the Minnesota tax return, remove the income at the screen Minnesota Tax Rebate Payment.