Self employed

The rebate checks are based on tax year 2021 when pandemic-era stimulus payments and rebates were more common.

Line 33 – Subtraction for one-time refund for tax year 2021 If you received a direct tax rebate payment for the one-time refund for tax year 2021, include the amount you received on line 33.

2023 Schedule M1M, Income Additions and Subtractions

First enter your 1099- MISC on your federal return:

1. Open your return and select Wages and Income
2. Scroll down to Other Common Income and select Start next to 1099-MISC
3. Enter your 1099-MISC and select Continue
4. Enter MN Rebate for the description and Continue
5. On the screen Does one of these uncommon situations apply? , select None of these apply
6. On the screen Did this involve work that's like your main job?, select No, it didn't involve work like my main job
7. On the screen How often did you get this income? , select I got it in 2023 and Continue
8. On the next screen, select No, it didn’t involve an intent to earn money and Continue
9. On the next screen, select No, if you don’t have any more forms to enter and Continue

On your MN return:

1. Continue until you get to Tell Us About Other Income Adjustments, select Received a one-time tax rebate for tax year 2023 from the State of Minnesota and select Continue
2. Enter the Rebate Payment Amount

The rebate is taxed on your federal return but not on the state return.