The Minnesota Department of Revenue plans to redistribute rebate checks that remained uncashed and have since expired to eligible residents over the forthcoming weeks.
The state is preparing to dispatch roughly 128,000 singular rebate checks to eligible residents, a distribution expected to be completed by mid-March.
Each qualifying family stands to receive a rebate of up to $1,300.
During the preceding year, a substantial portion of the state’s populace, totaling 2.1 million residents, benefitted from rebate disbursements, which were administered either through direct deposit or traditional mail channels.
The exact rebate amount allocated to individuals varied in accordance with their respective tax status.
Minnesota Rebates: Income Eligibility
Within the framework of the rebate initiative, joint tax filers whose gross income does not exceed $150,000 are entitled to receive a rebate totaling $520.
Similarly, individual filers whose earnings fall within the threshold of $75,000 qualify for a rebate amounting to $260.
Moreover, each rebate is augmented by an additional $260 for up to three dependents claimed by the taxpayer, in conjunction with the base amount.
As a result, a family consisting of five eligible members has the potential to receive a rebate totaling $1,300 from the state for their tax liabilities incurred in the year 2021.
Tax Exempt Locally, Taxable Federally
According to the state, the payments are exempt from state income tax but are subject to federal taxation.
Governor Tim Walz (D-MN) expressed frustration with the federal government’s decision to tax the checks, labeling it as “unfair” in December 2023.
Instructions on reporting the payment on one’s federal tax return are available on the state’s website.
If residents believe they qualify for the rebate but have not received it by May 1, they are advised to contact the state, as stated by the Minnesota Department of Revenue.
