topic Form 1099-MISC in Deductions & credits

Form 1099-MISC

flipside888 — Tue, 10 Feb 2026 11:03:27 GMT

I have a Form 1099-MISC that says "For calendar year 2023" and "...One-Time Tax Rebate Payment sent in late 2023..." On the "Minnesota Tax Rebate Payment" page, is the "Other Income" amount mentioned on my Form 1099-MISC what TurboTax is referring to, and what I should enter in the "Rebate Payment Amount" box? According to Direct Tax Rebate Payments | Minnesota Department of Revenue (state.mn.us), the payment appeared as "State of Minnesota 2021 Tax Rebate Program" on your bank statement..." I checked, and although there is a payment from MN in the amount mentioned on the Form 1099-MISC this post is about, "2021 Tax Rebate Program" doesn't appear anywhere in the entry on the bank statement.

Re: Form 1099-MISC

SharonD007 — Thu, 22 Feb 2024 01:42:34 GMT

The Rebate Payment Amount is the amount from your 2023 1099-MISC box 3, that you are describing above. The MN tax rebate for 2021 was paid to taxpayers in 2023, which is why you received the 1099-MISC for calendar year 2023 and must report it on your 2023 tax returns.

Follow the instructions below to add the income in the correct place.

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

You will see the income on line 8z with a description of Other Income (which will flow to line 8 of your 1040). When you pay for TurboTax, you will be able to view your forms.

Follow the steps below to deduct your MN tax rebate from your income so you won’t pay state taxes on it:

Select Prepare State from menu on left side and select Start
Select MN and select Continue
Scroll through the screens and when 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
Enter the Rebate Payment Amount

You will see the subtraction of your MN rebate from your income on line 7 of your MN M1M form since your rebate isn't taxable in MN.

For more information, review MN Department of Revenue - Direct Tax Rebate Payments.

Re: Form 1099-MISC

flipside888 — Thu, 22 Feb 2024 03:39:22 GMT

@SharonD007,

Thank you for your reply.

Regarding the first set of instructions you provided, after I did step 2 and clicked the "Yes" button, the screen that followed said I'll need to upgrade from Free Edition to Deluxe or Premium in order to report my 1099-MISC. I wasn't planning to upgrade, so can I just skip the first set of instructions and proceed to the four steps you provided about deducting my MN tax rebate from my income? I'm not certain if I'm required to file a return, but noticed a warning on my 1099-MISC that says I could be penalized if the income is taxable and not reported.

Re: Form 1099-MISC

SharonD007 — Thu, 22 Feb 2024 04:53:34 GMT

Yes, you will have to upgrade TurboTax to report your MN tax rebate. The TurboTax Free Edition only covers a 1040 tax return with limited credits. It doesn't include Schedule 1, where your MN tax rebate is reported on.

The federal filing requirements depends on your filing status, your age, and your income. Review the IRS website Fact Sheet Who needs to file a tax return to determine if you need to file a federal tax return.

The filing requirements for MN also depend on your filing status, age, and income. Review the MN Department of Revenue Who Must File an Income Tax Return for additional information.

If you determine that you aren't required to file federal and state tax returns, your MN tax rebate isn't taxable. Review the TurboTax article What Happens If I Don’t File Taxes?

Re: Form 1099-MISC

IND28 — Wed, 28 Feb 2024 00:26:36 GMT

What is the EIN number for the rebate? I cannot find my paperwork, it would be greatly appreciated!

Re: Form 1099-MISC

Vanessa A — Wed, 28 Feb 2024 00:35:15 GMT

The EIN on the 1099-Misc is located under the Payers name where it says Payers TIN. The TIN is the Taxpayers Identification Number, which an EIN would be.

Re: Form 1099-MISC

IND28 — Wed, 28 Feb 2024 00:55:24 GMT

Thank you but I lost the paperwork so I was hoping someone could help me 🫤

Re: Form 1099-MISC

LeticiaF1 — Wed, 28 Feb 2024 01:01:30 GMT

You can contact the state of Minnesota and get a form reissued. Call 651-565-6595 or email mntaxrebate@submittable.com.

@IND28

Re: Form 1099-MISC

flipside888 — Fri, 01 Mar 2024 22:57:01 GMT

I determined I am not required to file federal and state tax returns.

What do I need to do now?

Re: Form 1099-MISC

blwittenkeller — Thu, 07 Mar 2024 20:49:49 GMT

The 1099-MISC used by Minnesota for the one time 2023 tax rebate is triggering a Schedule C entry in my return. How do I nullify the triggering of Schedule C?

Re: Form 1099-MISC

ThomasM125 — Thu, 07 Mar 2024 21:04:21 GMT

After you enter the Form 1099-MISC you are asked a series of questions to help the program determine how to treat the income on your tax return. In your answers, if you indicate that the work didn't involve work like your main job, you only received the money in 2023 and the receipt didn't involve an intent to earn money, the income will be treated as "other income" on your return, as opposed to self-employment income reported on a schedule C.

Re: Form 1099-MISC

Erick7 — Fri, 29 Mar 2024 10:58:18 GMT

Hello,

For step 3 of the State filing, did you mean to say, “select Recieved a one-time tax rebate for tax year 2021 from the State of Minnesota.” ?

Re: Form 1099-MISC

MayaD — Fri, 29 Mar 2024 13:17:27 GMT

On the screen Tell Us About Other Income Adjustments, you would select Received a one-time tax rebate for tax year 2021 from the State of Minnesota.”

Re: Form 1099-MISC

tim_03149 — Sat, 06 Apr 2024 22:03:32 GMT

I am completing the 2023 MN Schedule M1M and it says on line 33 ... substraction for one-time refund for year 2021. Why is it saying year 2021? A little confusing.

Re: Form 1099-MISC

JohnW152 — Sun, 07 Apr 2024 15:19:48 GMT

It is unusual, but it's simply what 2023 Schedule M1M, Income Additions and Subtractions requires.

According to Line 33 – Subtraction for one-time refund for tax year 2021 in the instructions linked above:

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. You must have included the payment in federal adjusted gross income to subtract it on line 33.

@tim_03149

Re: Form 1099-MISC

bsieffer — Sat, 13 Apr 2024 14:55:45 GMT

The tax rebate received in late 2023 was based on income on the 2021 tax return. They call it a 2021 tax rebate. The money was received in 2023 and is taxable on the federal return in 2023. However it is titled "2021 tax rebate". This confused me terribly as well. And I am a CPA. I still don't think it is correct that the federal government taxes it, as it is a state tax refund. If one didn't itemize and receive a benefit from the taxes paid, it shouldn't be taxable when refunded. But we have to go with the IRS rules, no matter how crazy they are.

Re: Form 1099-MISC

AP2025 — Sun, 30 Mar 2025 00:08:14 GMT

Ive followed each of these steps and I do not get the prompt to state that this did not involve the intent to make money. Instead I get a message stating that the income will be filed under self employed schedule C and get prompted to fill out information about a business that does not exist. Am I missing something? Thanks in advance.

Re: Form 1099-MISC

PatriciaV — Sun, 30 Mar 2025 15:44:16 GMT

In TurboTax Online, open your return and pick up where you left off. Then look for Federal in the left panel. Click the down arrow and choose Wages & Income.

On the page "Let's get the details...", click Add/Edit to the right of Income from Form 1099-MISC.
Click the pencil icon to the right of the 1099-MISC you need to work on.
Work through the interview to the page "Do any of these uncommon situations apply?"
If none of these situations apply to the income on this 1099-MISC, click "None of these apply."
Now choose between "involved work like your main job" or "didn't involve work like your main job."
The following questions allow you to report this as income for a self-employment business already on your return (Schedule C) or create a new business.
Continue through all the questions back to the list of Forms 1099-MISC.