I received the state of Minnesota 2021 tax rebate program payment of $260. When doing my state taxes it said I need to claim this as federal income. How do I do that?

[pamelajhaugen]

I did not receive a misc 1099 form or any form stating I received this payment other than the paystub that came with the check.

[SharonD007]

You can wait until you receive your 1099-MISC so you will have the correct information to complete your taxes. Follow the instructions below to enter your tax rebate.

1. Launch TurboTax and select Wages and Income
2. Scroll down to Other Common Income and select Start by 1099-MISC
3. Enter your 1099-MISC and select Continue
4. Enter MN Rebate for the description and Continue
5. On the Does one of these uncommon situations apply? screen, select None of these apply
6. On the Did this involve work that's like your main job? screen, select No, it didn't involve work like my main job
7. On the How often did you get this income? screen, select I got it in 2023 and Continue
8. On the next screen, select No, it didn’t involve an intent to earn money and Continue
9. On the next screen, select No, if you don’t have any more forms to enter and Continue

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: 

1. Select Prepare State from menu on left side and select Start
2. Select MN and select Continue
3. Scroll through the screens and when you get to Tell Us About Other Income Adjustments, select Received a one-time tax rebate for tax year 2023 from the State of Minnesota and select Continue
4. Enter the Rebate Payment Amount

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.

For more information, review MN Department of Revenue - Direct Tax Rebate Payments.

[TomD8]

Your tax rebate may be reported to you on a 1099-G rather than a 1099-MISC.  In either case, you may not receive the form until late January or early February.  A 1099-G is entered in the Other Common Income section of TT.

[band300]

Well, it is now February 25th and I'm doing my taxes and I have not received a 1099 for this payment either.

[DianeW777]

You must decide how you want to handle it. If you have not received a reporting Form 1099 and you know you received the payment you can simply include it on your tax return.  You can choose to file and then amend after the form is received.  If you decide to amend later, come back to inquire about how to so that and we can help you.

Minnesota (MN) FAQs Direct Tax Rebate Payments | It is not taxable to MN.

• On your U.S. income tax return: This payment is taxable. We sent Form 1099-MISC to all rebate recipients to use when filing federal returns for 2023. 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.

Other Miscellaneous Income:

Go to the Wages and Income  section of TurboTax

1. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
2. Select Other reportable Income > Enter a description (----) and the amount

@band300

[band300]

So here's an update - I didn't receive my 1099-misc for the Minnesota 2021 Tax Rebate Program, so I called the Department of Revenue.  It took a while to get through on the phone (a long wait) but with the ID information I gave them, they were able to look at my 1099 form.  I'd printed a blank 1099 to see what information I needed, and was able to fill it in based on the information the employee gave me for payer, payer address, payer tax ID number and MN state tax ID number.  He'll mail me a duplicate form for my records, but this information allows me to finish inputting the information in TurboTax and file.  I'm heading out of town until mid-April so wanted to get this done before I go.