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You have to make sure that you entered the 2021 Covid relief correctly on both your federal and state return.
To enter it in your federal tax return:
You will see the income on line 8z with a description of Other Income (which will flow to 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:
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.
Feel free to contact us again if you have any additional questions.
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