Question

Form 1099-MISC

Forum|Forum|2 years ago
February 22, 2024
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I have a Form 1099-MISC that says "For calendar year 2023" and "...One-Time Tax Rebate Payment sent in late 2023..." On the "Minnesota Tax Rebate Payment" page, is the "Other Income" amount mentioned on my Form 1099-MISC what TurboTax is referring to, and what I should enter in the "Rebate Payment Amount" box? According to Direct Tax Rebate Payments | Minnesota Department of Revenue (state.mn.us), the payment appeared as "State of Minnesota 2021 Tax Rebate Program" on your bank statement..." I checked, and although there is a payment from MN in the amount mentioned on the Form 1099-MISC this post is about, "2021 Tax Rebate Program" doesn't appear anywhere in the entry on the bank statement.

TurboTax Free Edition Online

SharonD007

The Rebate Payment Amount is the amount from your 2023 1099-MISC box 3, that you are describing above. The MN tax rebate for 2021 was paid to taxpayers in 2023, which is why you received the 1099-MISC for calendar year 2023 and must report it on your 2023 tax returns.

Follow the instructions below to add the income in the correct place.

Launch TurboTax and select Wages and Income
Scroll down to Other Common Income and select Start by 1099-MISC
Enter your 1099-MISC and select Continue
Enter MN Rebate for the description and Continue
On the Does one of these uncommon situations apply? screen, select None of these apply
On the Did this involve work that's like your main job? screen, select No, it didn't involve work like my main job
On the How often did you get this income? screen, select I got it in 2023 and Continue
On the next screen, select No, it didn’t involve an intent to earn money and Continue
On the next screen, select No, if you don’t have any more forms to enter and Continue

You will see the income on line 8z with a description of Other Income (which will flow to line 8 of your 1040). When you pay for TurboTax, you will be able to view your forms.

Follow the steps below to deduct your MN tax rebate from your income so you won’t pay state taxes on it:

Select Prepare State from menu on left side and select Start
Select MN and select Continue
Scroll through the screens and when you get to Tell Us About Other Income Adjustments, select Received a one-time tax rebate for tax year 2023 from the State of Minnesota and select Continue
Enter the Rebate Payment Amount

You will see the subtraction of your MN rebate from your income on line 7 of your MN M1M form since your rebate isn't taxable in MN.

For more information, review MN Department of Revenue - Direct Tax Rebate Payments.

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F

flipside888Author

@SharonD007,

Thank you for your reply.

Regarding the first set of instructions you provided, after I did step 2 and clicked the "Yes" button, the screen that followed said I'll need to upgrade from Free Edition to Deluxe or Premium in order to report my 1099-MISC. I wasn't planning to upgrade, so can I just skip the first set of instructions and proceed to the four steps you provided about deducting my MN tax rebate from my income? I'm not certain if I'm required to file a return, but noticed a warning on my 1099-MISC that says I could be penalized if the income is taxable and not reported.

SharonD007

Yes, you will have to upgrade TurboTax to report your MN tax rebate. The TurboTax Free Edition only covers a 1040 tax return with limited credits. It doesn't include Schedule 1, where your MN tax rebate is reported on.

The federal filing requirements depends on your filing status, your age, and your income. Review the IRS website Fact Sheet Who needs to file a tax return to determine if you need to file a federal tax return.

The filing requirements for MN also depend on your filing status, age, and income. Review the MN Department of Revenue Who Must File an Income Tax Return for additional information.

If you determine that you aren't required to file federal and state tax returns, your MN tax rebate isn't taxable. Review the TurboTax article What Happens If I Don’t File Taxes?

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