How do I enter the Minnesota One-Time Tax Rebate Payment on the return?

[BillM223]

Are you asking if it is to be federally taxed? Apparently, the answer so far is "yes". See KSTP-TV and WCCO-4 for the news releases.

Where do you enter it? I would go to Wages & Income->Less Common Income->Miscellaneous Income where you can enter it and explain what it is. May I assume that the state has not sent you a 1099-G?

If you meant something else by your question, come back and let us know.

[cjcecil]

I received a 1099-MISC and when I try to enter under this it asks me questions about work performed and employer or self employment. And it is a tax rebate from the state no work performed.

[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. Select, No, it did not involve work like my main job.
2. Enter the year you received it 
3. 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 

[Tori595781]

I have followed these steps, but after i enter the rebate about it does not accept it and I cannot complete my filling because of this. The M1M form line 33 on turbo tax is hindering from completing my tax filling there is no other issue.  Please help @MayaD. Did this happen to you as well @cjcecil ?

[jurg201]

I am having the same problem. The entry on the M1M gets flagged with the note "Tax rebate payment should not be more than the amount reported on your federal return. I entered the 1099-MISC correctly and the amounts on both the 1099-MISC and M1M match.

[MonikaK1]

If you have confirmed that you entered exactly the same amount for the Minnesota exclusion as you did for the Federal income from the one-time Minnesota rebate, and you still get this message, try deleting the Minnesota entry, logging out of the program, and logging back in, and re-entering the exclusion amount.

If that doesn't work:

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions for TurboTax Online users: 

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

If you are using TurboTax Desktop please comment back and I will give you those instructions.

@cjcecil 

@Tori595781 

@jurg201 

[Tori595781]

Hello All,

The Issue is the M1M form on TurboTax. 
I have since spoken to an agent on Friday submitted the token got a case number, they closed my case and forwarded to an INV ticket which hopeful the developers will fix. 

To other MN customers reading or who comment on this thread with the same issue, follow the steps above about the token and talk with an agent (TurboTax Care Team) so they are aware more MN customers with 1099-MISC Form for Minnesota tax rebate have an issue with the M1M form line 33. Hopefully an even quicker fix will arise from increased number of reports. This issue with the form is the only reason I can't submit my filing which I already pay. 

[rondelamarter]

I followed your instructions, but it did not resolve the problem.  The review still reports a mistake that I do not know how to correct.  This looks like there is still a bug in how the 2023 One-Time Tax Rebate Payment is recorded in TurboTax that needs fixed.

[DawnC]

We can look at this further with a diagnostic file (copy of your tax return with all of your personal information removed) that is experiencing the issue.   You can send one by following the directions below.   Thank you!    @rondelamarter 

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen. 
3. A drop-down will appear. Select Tools  
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number in a reply to this post.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and 
3. Select “Send Tax File to Agent”.  This will generate a message that a diagnostic copy will be created.  
4. Click on OK and the tax file will be sanitized and transmitted to us.
5. Please provide the Token Number as a reply to this post.  

[rondelamarter]

Thank you.  I submitted token #1186587 for this.

[DawnC]

I looked over your return, and the 1099-misc is not the issue.   You have an empty entry in the Other Income section that needs to be deleted.    Your 1099-misc is not generating the error.  

You need to go to the Miscellaneous Income section - - it is the last item in Less Common Income.   Click Update or Review, then scroll down the last item - Other Reportable Income.  

Click Update.   Delete that $0 transaction and your error should be gone.   @rondelamarter 

[rondelamarter]

This resolved the problem.  Thank you for the help.