I got a 1099MISC from MN for a state payment not from self employment where and how do I add this or subtract it?

[SharonD007]

Assuming you received a 1099-MISC for your MN tax rebate, follow the instructions below to add the income in the correct place. 

1. Launch TurboTax and select Wages and Income
2. Scroll down to Other Common Income and select Start by 1099-MISC
3. Enter your 1099-MISC and select Continue
4. Enter MN Rebate for the description and Continue
5. On the Does one of these uncommon situations apply? screen, select None of these apply
6. On the Did this involve work that's like your main job? screen, select No, it didn't involve work like my main job
7. On the How often did you get this income? screen, 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

You will see the income on line 8z with a description of Other Income (which will flow 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 tax on it: 

1. Select Prepare State from menu on left side and select Start
2. Select MN and select Continue
3. 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
4. Enter the Rebate Payment Amount

You will see the subtraction of your MN rebate from your income on line 7 of your MN M1 form since your rebate is not taxable in MN.

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

[celia2001]

I can not enter the 1099-MISC. That form does not let you fill it out. I can not figure this out.

[CatinaT1]

Try closing TurboTax, clear your Cache and Cookies, and reopen TurboTax.  Make sure you have ran all updates. 

[EdmunDugas]

Hi,

  I didn’t read the instructions very well until I read your comment. What if I didn’t put my MN tax rebate under state but I entered it on my federal. Does it messed up my return? I got confused on the question that says MN tax rebate 2021. And I got it year 2023.

[DavidD66]

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".