Can’t deduct mn 2023 one time tax rebate from income

[rlaccint]

How to deduct 2023 one time tax rebate from income

[MayaD]

This payment is taxable on your federal income tax return. However, it is not taxable on your Minnesota income tax return.  If you include this payment in federal adjusted gross income, subtract it from Minnesota taxable income on line 33 of Schedule M1M and on line 10 of Form M1PR on your state return.

On your Federal return:

1. Open or continue your return.
2. Select Search, enter 1099-misc and select Jump to 1099-misc.
3. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, on the 1099-MISC Summary screen select Add Another 1099-MISC.
4. Enter the info from your form into the corresponding boxes and Continue
5. Select, No, it did not involve work like my main job.
6. Enter the year you received it 
7. Select, No, It didn't involve an intent to earn money 

On MN return:

1. Continue to the screen Tell Us About Other Income Adjustments
2. Check the box Received one time tax rebate.
3. Continue and enter the amount 

Edited [02/01/2024, 10:17 AM]
 

[Tori595781]

Even after I select Received one time tax rebate  and add the MN rebate amount on line 33 it says "all information on MW1 should be entered on Federal Return. Please ensure all information is entered."

Which I did!

I have filled out the 1099-MISC form in the federal section and checked multiple times 'line 3' which is the only line that has money is filled correctly on the 1099-Misc form on turbo. Yet I am at the filling section on turbo to complete filling my taxes, and it keeps bringing me back to form M1M saying "the amount entered cannot be bigger than federal return". It is not bigger. Please help. 

I cannot do a negative amount eg -260 on line 33 or put 0 on line 33 don't know what else to try. If the exact amount i had on the rebate does not work. 

[MonikaK1]

If you have already confirmed that you entered exactly the same amount for the Minnesota exclusion as you did for the Federal income from the rebate, you might try deleting the amount in the Minnesota return, logging out of TurboTax and logging back in, then re-entering the amount.

When you start your Minnesota state tax return, complete all of the interview questions. You will see a screen, "Tell Us About Other Income Adjustments" and a series of items and boxes. Check any that apply, and answer the related questions. In this case, check the box "Received a one-time tax rebate for tax year 2021 from the State of Minnesota". TurboTax will provide a follow-up screen where you can enter the amount of your rebate to be excluded from Minnesota income.

The rebates were part of a package of tax cuts approved in the 2023 legislative session to return a portion of a projected $17.6 billion budget surplus to taxpayers. Individuals were eligible for $260 if they had a gross adjusted income of up to $75,000 in 2021, and $520 for married filers who earned up to $150,000. See here for more information about the rebate from the State of Minnesota Department of Revenue.