"It is not part of the federal income tax which would also not require you to reduce your income for your CO return."
According to the MN tax website, the 2023 MN tax rebate IS taxable at the federal level:
https://www.revenue.state.mn.us/direct-tax-rebate-2021#:~:text=Rebate%20Payment%20is%20Taxable%20on,....
The taxpayer will likely receive a 1099-MISC.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
