MN Frontline Worker Pay - Error Message

[marymforbes]

I entered my $487 Frontline Worker Pay for federal under "Other Taxable Income". In my MN return I included the $487 on the Frontline Worker Pay page but when I go to file my MN return I get an error:

"Schedule M1M: Frontline Worker Pay should be blank. To qualify for subtraction in Minnesota you must report this payment as income on your federal return."

My federal return has already been transmitted and accepted.

I did report report the payment as income on my federal return, so why am I getting this error message? It won't let me file the MN return unless I delete the $487 I entered.

[DaveF1006]

To clarify, would you describe the steps you took to report this in your federal return.

[mjromans8]

I am having this exact same issue. On my federal return, I listed the amount as Miscellaneous Income under "Less common income". Thank you

[TeresaM]

The IRS had a press release on Feb 3rd that they are reviewing the taxability of state payments such as Frontline Worker Pay. You may wish to wait until that is reviewed and they give revised guidelines for reporting. It may change entry into the return in TurboTax. 
 

Feb 3, 2023
The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers. There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. We expect to provide additional clarity for as many states and taxpayers as possible next week.

[ericjj8838]

I am receiving the same error. However, I have not filed neither the Federal or State. There must be a glitch or TT is waiting for the IRS to complete their look into this.

[DMarkM1]

The IRS decision has been made on which state payments will be non-taxable.  You can click here for the decision and a table of excludable state payments. The MN Frontline Worker payments are taxable on your federal return.   

Payments from states provided as compensation to workers are includable in income for federal income tax purposes. 

Many times there is just a stray entry that causes a reject error.  Start by going back to your federal return interview and deleting all Frontline Worker Pay entries you previously made.   

Next go back to be sure the income is no longer on your federal return. 

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• You are verifying the amount is not included on line 8 and/or 10, Schedule 1.
• Down the left side of the screen, click Back to return.

To enter Minnesota Frontline Worker, follow these steps:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Less Common Income.
• Select Miscellaneous Income, 1099-A.
• Select Other reportable Income.
• As a description enter MN Frontline Worker Pay.

In the Minnesota tax return interview, verify the entry is still there at the screen Frontline Worker Pay.  It should be; but if not, re-add it there.  

[ericjj8838]

I went and removed it and saved it. I then re entered as described and then ran the review on federal side. All is good. I then ran the review on the state side and received the same error again. 

[DawnC]

Before starting the MN return, verify the amount of your MN Frontline Pay is on Schedule 1, Line 8.   Preview My 1040 instructions.   Schedule 1 will be located underneath Form 1040 when you are viewing it; just scroll down past Form 1040.   As long as it is showing there, the subtraction should be allowed on your MN return.   @ericjj8838 

You may need to delete the state return and/or start it over if you continue getting that error.   

[Anonymous]

Same error message regarding the Frontline worker pay. The entry on the Federal return is obviously not linked to the MN M1 or M1M. I deleted my state and re-entered it. I used the information provided above. I'll e-file then submit an amended return. Maybe turbotax should either fix the code or allow the error to bypass to E-file.  Amended tax returns are filed on paper and take a while to get processed. Turbotax will be creating unnecessary  work for the MN Department of Revenue. 

[pdGilv0ld]

I have filed my 1040-SR online and it has been accepted.  The frontline worker pay amount shows on line 1h.   Line 8 is blank.   I cannot find Schedule 1 to see if there is anything on line 10,  it doesn't show on my summary.

My MN return stops on the error saying my MN M1M :Frontline worker pay should be blank.  I deleted my MN return and started over.   I still get the same error.  What do I do now?

[HopeS]

Here is how to enter Minnesota frontline worker payment. The payment is taxable on your Federal return but it is not taxable in Minnesota, nor included in your household income.

1. Open or continue your return in TurboTax
2. Select Federal
3. Select Wages & Income
4. Under Less Common Income, select Start or Revisit next to Miscellaneous Income, 1099-A, 1099-C
5. Select Start or Revisit next to Other reportable Income
6. On the Any Other Taxable Income? screen, select Yes
7. Enter MN Frontline as the description and enter the amount you received
8. Continue through and finish your federal return
9. Begin your Minnesota return until you see the Frontline Worker Pay screen
10. Enter the Payment Amount

@pdGilv0ld 

[Anonymous]

Has anyone got that to work? That’s exactly what I did. 

[CarissaM]

When you followed the instructions did it work for you @Anonymous ?

[betsgirl1]

This worked for me after trying to get this set for an hour - THANK YOU!!!

[Anonymous]

No