Assuming you received a 1099-MISC for your MN tax rebate, 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 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 tax 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 M1 form since your rebate is not taxable in MN.
I didn’t read the instructions very well until I read your comment. What if I didn’t put my MN tax rebate under state but I entered it on my federal. Does it messed up my return? I got confused on the question that says MN tax rebate 2021. And I got it year 2023.
Your Minnesota tax rebate is a taxable item for federal tax, but not for Minnesota state tax. Therefore, the 1099-MISC should be entered and reported on your federal tax return. It then needs to be subtracted as an adjustment to your state tax return by selecting "Received a one-time tax rebate for tax year 2023 from the State of Minnesota" on the screen "Tell Us About Other Income Adjustments".
**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"