State tax filing
Changing the code may help but it sounds like you need to remove the self-employment activity from your tax return.
The Minnesota payments are taxable income on the Federal 1040 tax return but not subject to self-employment income.
Remove the self-employment income and re-enter the IRS form 1099-MISC as described below. In TurboTax Online, remove the self-employment activity by:
- Down the left side of the screen, click on Tax Tools.
- Click on Tools.
- Click on Delete a form.
- Find the self-employment form(s) listed and click Delete to the right.
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.
