The Minnesota Department of Revenue has been receiving returns filed by tax professionals claiming the Direct Tax Rebate subtraction on Schedule M1M, Income Additions and Subtractions, when their clients did not qualify for or receive this rebate.

To ensure we process your clients? returns as quickly as possible, verify they qualified for a Direct Tax Rebate before claiming the subtraction.

How do I verify my client qualified for the rebate?

Review the rebate qualifications in the Who Is Eligible section of our Direct Tax Rebate Payments page.

You may also:

• Ask your client for their Form 1099-MISC reporting the Direct Tax Rebate amount. All clients who qualified for a rebate should have received a Form 1099-MISC from us.
• Check your client?s bank statements for the rebate amount. We issued rebates by direct deposit between August 16 and September 27. The rebate is labeled either ?State of MN? or ?State of Minnesota 2021 Tax Rebate Program? on statements.
  • Note: Between late February and mid-March, we are reissuing uncashed and expired rebate checks to certain clients. For details, see our press release.
• Call 651-556-3000 or email us to verify if a client qualified for the rebate. When calling, make sure you have power of attorney on file or your client present with you.

What if my client claimed the subtraction when they did not qualify?

If you reported a rebate amount as income on their federal income tax return, you need to amend the federal return. You also need to amend the Minnesota income tax return to remove the subtraction.

?

Thank you for subscribing. Get our latest news and updates by following us on Facebook, X, and Instagram and by signing up for email updates.