$1,300 payment to revive Minnesota

Residents of the state of Minnesota Taxpayers are being notified of a potential unclaimed benefit they are entitled to. In 2023, the state gave its residents a rebate of up to $1,300, and many residents have not claimed it. In fact, according to the Minnesota Department of Revenue, at least 128,000 checks have yet to be cashed, and while the rebates don’t expire for two years and taxpayers still have time to claim them, we all know that the longer you wait, the less likely you are to claim them.

This rebate is a post-pandemic holdover that could help many families cope with their expenses in the current economic climate. However, the rebate is not universal and those who wanted it would have had to apply for it.

What were the conditions for receiving the discount?

To benefit from this tax reduction, certain conditions had to be met, such as:

• Be a resident of the State of Minnesota for all or part of 2021.
• File the following tax returns by December 31, 2022: 2021 Form M1, Minnesota Personal Income Tax, 2021 Form M1PR, Home Equity Refund (for homeowners), and Renter’s Property Tax Refund.
• Have an adjusted gross income in 2021 (line 1 of Form M1 or Form M1PR) of $150,000 or less for married individuals filing jointly or $75,000 or less for individual taxpayers.
• Not claimed as a dependent on another person’s 2021 Minnesota income tax return.

Additionally, the company provides clarifications and exceptions for certain cases, for example, if an eligible married couple filed a joint return in 2021 and one spouse dies before January 1, 2023, the surviving spouse is entitled to the complete refund. However, if an individual taxpayer dies before this date, their dependents are not eligible for the refund.

How much did the State of Minnesota allocate for reimbursement?

According to the Minnesota Department of Revenue, while the refund amount can be up to $1,300 for couples with at least three dependents and in the lower economic brackets, joint filers with an adjusted gross income of $150,000 could receive up to $520, while individual taxpayers with an adjusted gross income of $75,000 could receive up to $260 in refunds.

Note that the Internal Revenue Service will count this rebate as income on your federal tax return, so be sure to file correctly to avoid penalties. Conversely, this rebate payment is not taxable on your Minnesota tax return. State officials, particularly Gov. Tim Walz, who is responsible for the check, say it is unfair to residents that this rebate is considered income by the federal government, since it is a rebate and other similar pandemic and post-pandemic relief measures have not been counted as such. Still, state measures will be implemented during tax season to ensure that the burden placed on families by the check is not too great.

Since many checks have not yet been cashed, a second round of checks will be sent out, with the old ones being voided to prevent fraud. It is hoped that most families will take advantage of this opportunity to deposit money and that a third round will not be necessary. For those who believe they should have received a check and did not (it should have been received by May 1), they should contact the Minnesota Department of Revenue to ensure that their information is correct and that they are indeed eligible to receive the check.