Is 2023 Minnesota Homestead tax refund taxable income?

[TomK2023]

Do you mean your Minnesota Tax Rebate?  This rebate payment is not taxable on your Minnesota income tax return. The Internal Revenue Service determined this rebate to be taxable on the federal return. Due to this decision, all rebate recipients were sent a Form 1099-MISC to use when filing their 2023 individual income tax returns.

The Minnesota Tax Rebate is the amount from your 2023 1099-MISC Box 3 form that you received.  The MN tax rebate for 2021 was paid to taxpayers in 2023, which is why you must report it on your 2023 tax returns.

To enter a 1099-MISC for Minnesota Tax Rebate:

1. Open your return.
2. Click on Federal tab, then Wages & Income.
3. Scroll down to Other Common Income - Tax refunds, 1099-G, 1099-NEC, 1099-MISC, 1099-K, Click on down arrow.
4. Click on 1099-MISC Start/Revisit.
5. Enter info from 1099-MISC form (Payer, Federal ID #, Box 3 amount, etc.), Continue
6. Enter Description for reason for 1099-MISC; perhaps something like "Minnesota Tax Rebate", Continue.  
7. On Does one of these common situation apply? page, Click on None of these apply.  Continue.  
8. Did this involve work that's like your main job?  Answer No, Continue.
9. When asked about frequency of payment, Select 2021.  Continue.
10. When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax).  Continue.
11. Click on No that you don't have another 1099-MISC (unless you do, of course), Continue
12. You should land on 1099-MISC Summary page.