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To add it to federal income.
To exclude it from Minnesota Income, as you prepare your Minnesota return, you will reach a screen that says Tell Us About Other Income Adjustments. Here you will check a box that says Received one-Time Tax Rebate for Tax Year 2021 from The State of Minnesota. After you continue with this, a drop-down will appear that will report this income. Enter it and it will be excluded from Minnesota income.
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