Form 1099-MISC

[flipside888]

I have a Form 1099-MISC that says "For calendar year 2023" and "...One-Time Tax Rebate Payment sent in late 2023..." On the "Minnesota Tax Rebate Payment" page, is the "Other Income" amount mentioned on my Form 1099-MISC what TurboTax is referring to, and what I should enter in the "Rebate Payment Amount" box? According to Direct Tax Rebate Payments | Minnesota Department of Revenue (state.mn.us), the payment appeared as "State of Minnesota 2021 Tax Rebate Program" on your bank statement..." I checked, and although there is a payment from MN in the amount mentioned on the Form 1099-MISC this post is about, "2021 Tax Rebate Program" doesn't appear anywhere in the entry on the bank statement.

[SharonD007]

The Rebate Payment Amount is the amount from your 2023 1099-MISC box 3, that you are describing above.  The MN tax rebate for 2021 was paid to taxpayers in 2023, which is why you received the 1099-MISC for calendar year 2023 and must report it on your 2023 tax returns.

Follow the instructions below to add the income in the correct place. 

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 taxes 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 M1M form since your rebate isn't taxable in MN.

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

[flipside888]

@SharonD007,

Thank you for your reply.

Regarding the first set of instructions you provided, after I did step 2 and clicked the "Yes" button, the screen that followed said I'll need to upgrade from Free Edition to Deluxe or Premium in order to report my 1099-MISC. I wasn't planning to upgrade, so can I just skip the first set of instructions and proceed to the four steps you provided about deducting my MN tax rebate from my income? I'm not certain if I'm required to file a return, but noticed a warning on my 1099-MISC that says I could be penalized if the income is taxable and not reported.

[SharonD007]

Yes, you will have to upgrade TurboTax to report your MN tax rebate. The TurboTax Free Edition only covers a 1040 tax return with limited credits.  It doesn't include Schedule 1, where your MN tax rebate is reported on.

The federal filing requirements depends on your filing status, your age, and your income.  Review the IRS website Fact Sheet Who needs to file a tax return to determine if you need to file a federal tax return.

The filing requirements for MN also depend on your filing status, age, and income. Review the MN Department of Revenue Who Must File an Income Tax Return for additional information.

If you determine that you aren't required to file federal and state tax returns, your MN tax rebate isn't taxable. Review the TurboTax article What Happens If I Don’t File Taxes?

[IND28]

What is the EIN number for the rebate? I cannot find my paperwork, it would be greatly appreciated! 

[Vanessa A]

The EIN on the 1099-Misc is located under the Payers name where it says Payers TIN. The TIN is the Taxpayers Identification Number, which an EIN would be. 

[IND28]

Thank you but I lost the paperwork so I was hoping someone could help me 🫤

[LeticiaF1]

You can contact the state of Minnesota and get a form reissued.  Call 651-565-6595 or email mntaxrebate@submittable.com. 

@IND28 

[flipside888]

I determined I am not required to file federal and state tax returns.

What do I need to do now?

[blwittenkeller]

The 1099-MISC used by Minnesota for the one time 2023 tax rebate is triggering a Schedule C entry in my return. How do I nullify the triggering of Schedule C?

[ThomasM125]

After you enter the Form 1099-MISC you are asked a series of questions to help the program determine how to treat the income on your tax return. In your answers, if you indicate that the work didn't involve work like your main job, you only received the money in 2023 and the receipt didn't involve an intent to earn money, the income will be treated as "other income" on your return, as opposed to self-employment income reported on a schedule C.

[Erick7]

Hello,

For step 3 of the State filing, did you mean to say, “select Recieved a one-time tax rebate for tax year 2021 from the State of Minnesota.” ?

[MayaD]

On the screen Tell Us About Other Income Adjustments, you would select Received a one-time tax rebate for tax year 2021 from the State of Minnesota.” 

[tim_03149]

I am completing the 2023 MN Schedule M1M and it says on line 33 ... substraction for one-time refund for year 2021.  Why is it saying year 2021?  A little confusing.

[JohnW152]

It is unusual, but it's simply what 2023 Schedule M1M, Income Additions and Subtractions requires.

According to Line 33 – Subtraction for one-time refund for tax year 2021 in the instructions linked above:

If you received a direct tax rebate payment for the one-time refund for tax year 2021, include the amount you received on line 33. You must have included the payment in federal adjusted gross income to subtract it on line 33.

@tim_03149