1,025,655 people in Minnesota applied and were approved for Frontline Worker Pay. I just found out recently that this is taxable income, and by searching through the previous questions here about it, I learned that we need to use the 1099-MISC form to claim it. I’m someone who almost always has what TurboTax considers a simple tax return, and am able to file with the free edition. However, the 1099-MISC form isn’t included in the free edition, so TurboTax says I have to upgrade to Deluxe for $78 just to claim the frontline pay. I think this situation should be an exception and a free upgrade to the Deluxe version. Is there anything that can be done about this or does everyone in Minnesota who uses TurboTax to claim frontline pay need to pay the $78?
You can try to file this as other income and possibly workaround the requirement to file this as 1099-MISC income. Try this and let us know if this is successful.
Ok, thanks for the idea, I will try this tomorrow morning and let you know how it goes.
Ok, I just tried your suggestion, and I get the same message “To accurately complete your taxes, you need to upgrade to TurboTax Deluxe”.
To enter Minnesota Frontline Worker, follow these steps:
In the Minnesota tax return, remove the income at the screen Frontline Worker Pay.
I put the income in the federal like you said but when I got to the state it said to put the money you received only if you claimed in federal. You said to not do that?
I don't see where anyone said "not to do that", but no matter.
In both Dave's and James' suggestions, you are claiming the income on the federal return, so that you will back it off (i.e., subtract it off) the state return.
How do I subtract it in the state? It asks the amount I claimed in federal by putting it in this is automatically subtracted? Im confused
Yes, on the Minnesota screen that asks you for the Frontline Worker Pay, enter as a positive number the amount that you added to federal income as Frontline Worker Pay (wherever you entered it). This amount will be subtracted from your state income.
I inputted the information and it is telling me I need a EIN number for this can I just leave that blank?
You may be entering your Minnesota Frontline Worker Payment in the wrong place.
Here’s how to enter your Minnesota Frontline Worker Pay in TurboTax.
To add Minnesota Frontline Worker Pay to federal:
To remove Minnesota Frontline Worker Pay from your MN return:
To learn more about Frontline Worker Pay.
Thank you for the instructions, however, it still wants me to upgrade to the Deluxe addition. How do I avoid this.
You will have to upgrade to Deluxe to enter other income.
Minnesota says you may be able to file for free on these sites: Free Electronic Filing.
@millyshwiff
I did as you said and it shows me in the review that I need to enter the ein number for the state of Minnesota on the 1099 MISC paperwork
Delete your 1099. If you entered your Minnesota Frontline Worker Pay as Other Income, you do not need an entry in the 1099 section.
I'm not paying to upgrade. And it will not let me enter it any of the ways that are on here.
I thought there is one more step otherwise MN taxes this
Yes, after entering the amount in the federal interview you will need to go to the MN state interview. Click through the income section and you will be asked to enter your MN Frontline Pay to deduct it from MN taxable income.
Did any of you read the original question? You could have just not wasted everyone's time by saying, "you can't put in front line worker pay without us bilking you for $80 additional" instead of repeating the same bad directions over and over that didn't answer the question.
You will need to pay to upgrade to Deluxe if reporting this income through your taxes. There's no way out of it, which sucks. I am paying $93 just to get the 1099 form added. Very upsetting.
Yeah, it does look like there’s no way around the deluxe upgrade. I paid $83, and that’s with the automatic discount they gave me. I think without any discount, it’s $113.
I just added to my AGI.. wasn't going to pay 78 dollars to upgrade.. ended up paying taxes on it for Minnesota but it was less than the 78 dollar upgrade... hopefully the feds don't freak out about it lol
Yes, there was a news release from the IRS asking taxpayers to hold off filing tax returns if there were rebates offered in certain states. The agency is trying to determine if this is taxable income or not. The Minnesota Front Line Worker Pay was included in this news release.
You might find this article informative for future reference.
@Mark7519