If you've received a state rebate check, be prepared to pay taxes on it.
The Minnesota Department of Revenue has confirmed to WCCO Radio that while the state won't be taxing those rebate checks you received from the State of Minnesota, the IRS has determined that they are taxable for federal tax purposes.
The amount will depend on the size of the rebate and the household income.
The state will be sending a 1099-MISC form to all rebate recipients to use when the file their 2023 tax returns.
"Taxpayers should use the information on this form when filing their 2023 income tax return," the Department of Revenue told WCCO in an email. "If they include this payment in their federal adjusted gross income, they should subtract it from their Minnesota taxable income on line 33 of Schedule M1M on their Minnesota return."
Governor Tim Walz is none too pleased that the IRS plans to tax Minnesotans' rebate checks. Walz told reporters Wednesday that the decision is "bull (expletive)".
"And I spoke to the President's Chief of Staff yesterday when this became clear," explained the governor. "Look, Minnesota's being treated unfairly in this. They picked an arbitrary date to end the emergency on May 11th. The legislature did not get finished and signed them over until the 26th. So we missed by 15 days. Every other state was afforded this. And they say, 'well, we've got to have a red line in the sand.'"