Good Question: How do you properly file your taxes for the Minnesota tax rebate payment?
MINNEAPOLIS — A welcomed boost to the bank account last year is now a potential speed bump during tax season. More than two million Minnesotans are dealing with it.
We wanted to know: How do you properly file your taxes for the Minnesota tax rebate payment? Good Question.
When a surplus of state funding was returned to Minnesotans in the form of one-time checks and direct deposits last year, taxpayers were grateful.
Eligible single filers got $260. Eligible married couples got $520. Eligible families could have received $260 per dependent for a total of up to $1,300.
That gratitude, however, was met with disappointment upon the news that recipients would have to pay federal tax on the rebate, anywhere from $26 to $286.
READ MORE: Minnesota's one-time tax rebate will be federally taxed, Gov. Walz says he's "deeply disappointed"
It should be "easy" to do, but then again nothing's easy about filing our taxes. Let's start with the least difficult method.
Having a professional take care of it
You should have received a 1099-MISC form in the mail which shows the rebate amount received. Hand it over to the professional with your other documents — boom done.
Filing electronically
This includes using online services like Turbo Tax. When adding other forms of income on the digital filing tool, look at sections labeled 1099 MISC.
You'll have to type out the name of the payer, in this case, the State of Minnesota. You might be asked about the state's Tax ID Number (TIN). Then add in the rebate amount received listed as "other income" on the 1099-MISC.
Filing by hand
The directions for this step are written on the 1099-MISC form and state: "If you include this on your federal gross income, subtract it from your Minnesota taxable income on line 33 of schedule M1M on your Minnesota return." On the second page of the M1M form is line 33, specifically made for the rebate. Write down the rebate amount received on line 33.
Heads up if you own a home. There's another form to make a subtraction, the M1PR. Simply write the rebate amount on line 10 — under "other subtractions."
Be sure to include the 1099-MISC with all the forms you submit.
For more information about the one-time rebate payment and to find the M1M and M1PR forms, click here.
Monday, April 15 is the deadline to file your taxes or request an extension.