I got a rebate check from the Minnesota EV Rebate program and entered it as other income in the federal section. The rebate is not subject to MN tax. How do I remove it

[hoffadg]

I got a rebate check from the Minnesota EV Rebate program and entered it as other income in the Federal Tax section. The rebate is not subject to state tax. How do I remove it from my income in the Minnesota Tax section?

[AmyC]

The rebate check is typically no longer considered income for your tax return. Instead, it reduces your basis in the asset. The IRS has changed several laws around energy efficiency. Unless you received a 1099-MISC for the rebate, then it would be taxable income.

MN is still updating, see Form availability. If you have taxable income, you should be able to remove it once the program is complete.

[hoffadg]

I clicked on the link and it looks like the MN forms are ready but I still can't find where I can subtract the amount I entered in the Federal section for the EV rebate.  I'm using the online version.

Thanks,

Dan

[DaveF1006]

It depends.  According to this Turbo Tax link, most, if not all these forms, are not ready until Jan 30. Please, check back after that time for an update. 

@hoffadg 

[hoffadg]

According to the link, MN form M1M is ready, yet I still do not see any options to enter the amount I received for the MN EV Rebate Program in 2024.

[DaveF1006]

To enter the amount of your rebate in your Minnesota return, do not enter this directly on a M1M form. Instead, select the state taxes tab in your Minnesota return.  As you navigate through the screens, there will be a screen asking for the Minnesota tax rebate payment amount.  Here you enter that amount here and this will exclude this payment from your Minnesota AGI and will populate Lines 33 and 35 from your Minnesota M1M form. This is the section that should appear in your Minnesota State return.

[hoffadg]

Thanks for the suggestion!  For some reason I am only able to enter $1300 max on this screen.  I received 2 rebate checks for $2500 each, so I need to enter $5000.  Is there another way to enter a number higher than $1300?

[desflurane]

The Minnesota Department of Revenue neglected to allow  for the  subtraction of the $2,500 EV rebate from Minnesota Taxable Income.