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Tax Professional Tip #5 ? Income tax treatment for Frontline Worker Pay
Frontline Worker Pay was signed into law on April 29, 2022. Over 1 million Minnesota workers qualified for the $487.45 payment. Federal Forms 1099 were not issued for these payments, so you will need to ask your clients if they received them.
Based on current tax returns submitted to us, many tax software products are not handling these payments correctly. We are working with software providers to help solve this issue. We will provide further updates as available, including guidance for returns already filed.
How do I report this payment on my clients? 2022 income tax returns?
If your client received Frontline Worker Pay:
- It is taxable on federal income tax return. Report it on line 8 of federal Schedule 1 (Form 1040).
- It is not taxable in Minnesota and not included in household income. If your client reports the payment on line 8 of Schedule 1, subtract it on these lines:
- Line 29 of Schedule M1M, Income Additions and Subtractions.
- Line 10 of Form M1PR, Homestead Credit Refund (for Homeowners) and Renter?s Property Tax Refund.
- Line 5b of Schedule M1ED, K-12 Education Credit.
For more information, see Revenue?s Frontline Worker Pay page.
Questions?
Contact us.
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If you
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Then
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Need help with your clients? accounts and have power of attorney on file with us
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Contact the appropriate taxing division
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Have questions about tax law changes
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Email [email protected]
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Have general questions, need time-sensitive assistance, or have an idea for a tax pro tip
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Email [email protected], or call 651-556-6606
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