Form 1099-MISC being issued for Direct Tax Rebate payment recipients
The Minnesota Department of Revenue will mail federal Form 1099-MISC to all Minnesota Direct Tax Rebate recipients to use when filing their 2023 federal income tax returns in 2024. Recipients should expect their Form 1099-MISC by the end of January.

Why is Revenue sending these forms?
While Direct Tax Rebates are not taxable for Minnesota purposes, the IRS has determined that they are taxable on the federal return.

Recipients will report the Form 1099-MISC amount on line 8 of federal Schedule 1 (Form 1040).

Is the payment taxable on Minnesota returns?
No. If recipients include this payment in their federal adjusted gross income, they should subtract it from their Minnesota taxable income on line 33 of their Schedule M1M, Income Additions and Subtractions.

Recipients who file Form M1PR, Homestead Credit Refund (for Homeowners) and Renter?s Property Tax Refund, should subtract the payment from their household income on line 10 of the form.

What if I have questions about the Direct Tax Rebate?
For general questions and information about the payment, visit our Direct Tax Rebate Payments webpage.

For questions about filing your federal return and reporting Form 1099-MISC income, call the IRS at 1-800-829-1040.