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posted Feb 24, 2024 7:12:09 PM

My husband received Post-9/11 Veteran Service Bonus in MN for 2023. We received a 1099-MISC form. I'm not sure this it considered taxable income -deduct for MN?

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1 Replies
Expert Alumni
Feb 25, 2024 10:52:28 AM

This Minnesota document states:

 

The following applies to applicants and enrollees whose eligibility for health care programs is determined using the MAGI methodology, including: • 

 

  • Medical Assistance for Families and Children and Adults (MA-FCA) 
  • Emergency Medical Assistance (EMA) for people with a Families and Children and Adults basis of eligibility 
  • The Minnesota Family Planning Program (MFPP) 
  • MinnesotaCare 

 

For these populations and programs, do not count the post 9/11 veteran service bonus payments as income. Also, do not count the payments in a person’s projected annual income (PAI) for MinnesotaCare. This is because the MAGI methodology is based on the Internal Revenue Code and the bonus payments are not subject to federal income tax. 

 

Recipients of the bonus payments will not receive a W-2 or 1099 from the State of Minnesota.

 

I do not understand how the Minnesota document states that no 1099 form will be issued, yet you received an IRS form 1099-MISC.  

 

Does your husband not meet the qualifications listed above, therefore it is deemed taxable to him?  Who was the issuer of the IRS form 1099-MISC?