This payment is taxable on your federal income tax return. However, it is not taxable on your Minnesota income tax return. If you include this payment in federal adjusted gross income, subtract it from Minnesota taxable income on line 33 of Schedule M1M and on line 10 of Form M1PR on your state return.
On your Federal return:
- Open or continue your return.
- Select Search, enter 1099-misc and select Jump to 1099-misc.
- Answer Yes to Did you get a 1099-MISC?
- If you already entered a 1099-MISC, on the 1099-MISC Summary screen select Add Another 1099-MISC.
- Enter the info from your form into the corresponding boxes and Continue
- Select, No, it did not involve work like my main job.
- Enter the year you received it
- Select, No, It didn't involve an intent to earn money
On MN return:
- Continue to the screen Tell Us About Other Income Adjustments
- Check the box Received one time tax rebate.
- Continue and enter the amount
Edited [02/01/2024, 10:17 AM]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
