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Direct Tax Rebate Payments
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One-Time Refund for Tax Year 2021
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The Minnesota Department of Revenue has reissued 128,000 one-time tax rebate checks that were issued last year but went uncashed and expired. These checks were mailed to the most recent address we have on file for recipients. They expire two years after the issue date.
In all, we issued nearly 2.1 million Direct Tax Rebate payments — totaling nearly $1 billion — under a law passed in May 2023. Eligibility and rebate amounts were based on previously filed 2021 income tax or property tax refund returns.
We initially sent payments by direct deposit or paper check in August and September 2023, and we reissued 150,000 uncashed checks in November and December. Then, in February and March 2024, we reissued checks that still had not been cashed.
Rebate Payment is Taxable on Federal Return
The IRS determined this payment is taxable on federal returns. We sent Form 1099-MISC to all rebate recipients to use when filing U.S. individual income tax returns. If you include this payment in federal adjusted gross income, subtract it from Minnesota taxable income on line 33 of Schedule M1M and line 10 of Form M1PR.
About the Rebate Program
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You are eligible if you met all of the following requirements:
- You were a Minnesota resident for part or all of 2021
- You filed one of the following returns by December 31, 2022:
- 2021 Form M1, Minnesota Individual Income Tax
- 2021 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund
- Your 2021 adjusted gross income (line 1 of Form M1 or Form M1PR) was:
- $150,000 or less for married joint filers
- $75,000 or less for all other filers
- You were not claimed as a dependent on someone else's 2021 Minnesota income tax return
Taxpayers who died before January 1, 2023, are not eligible. But if an otherwise eligible married couple filed a joint return for 2021 and one spouse died before January 1, 2023, the other spouse is entitled to the full rebate.
The one-time rebate law provided payments of up to $1,300 for eligible taxpayers, including:
- $520 for married couples filing a joint return with adjusted gross income of $150,000 or less
- $260 for all other individuals with adjusted gross income of $75,000 or less
- Another $260 for each dependent claimed on your return, up to three dependents ($780)
For most recipients, we sent the rebate payment to the bank account or mailing address on your 2021 income tax or property tax refund return. If you updated your bank, address, or refund method with us in July, we used the information you provided. Any failed direct deposits were automatically changed to a paper check.
If you think you're eligible and do not receive a rebate by May 1, 2024, call us at 651-556-3000. We will work with taxpayers who are eligible but did not receive a rebate.
No. This rebate payment was processed outside the usual tax refund processing system so it will not show up in the Where’s My Refund? system.
On your Minnesota income tax return: This payment is not taxable and will not be taken to pay any unpaid tax or debts we collect for other agencies.
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. 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 11 of Form M1PR on your state return.
(Updated January 23, 2024)
Part-year residents receive a portion of the rebate based on their income in Minnesota. For example, if 25% of your 2021 income came from Minnesota, you receive 25% of the rebate amount.
Check and Direct Deposit Payments
The rebate checks reissued in February and March 2024 are being mailed from the State of Minnesota. These checks will look similar to the example below. They are protected by standard banking safeguards that help detect and deter fraud.
Most banks can cash the check for a fee. You may need to present a valid government-issues ID to cash the check, such as a driver's license, passport, or other state or federal ID.
We may still mail a paper check in some cases to ensure you receive the payment, such as:
- If a direct deposit is returned due to a banking error or incorrect bank account information.
- If you elected to have tax preparation fees deducted from your 2021 tax refund.
