DavidD66
Expert Alumni

Self employed

Your Minnesota tax rebate is a taxable item for federal tax, but not for Minnesota state tax.  Therefore, the 1099-MISC should be entered and reported on your federal tax return.  It then needs to be subtracted as an adjustment to your state tax return by selecting "Received a one-time tax rebate for tax year 2023 from the State of Minnesota" on the screen "Tell Us About Other Income Adjustments".

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"