Politics and Government

Minnesota tax rebate checks are moving forward. Here’s what you need to know

The Minnesota Capitol under a cloudy sky
Minnesotans who have moved or changed banking information since filing their 2021 taxes will have to update their information with the state to receive a rebate check this fall.
Tim Pugmire | MPR News 2022

Minnesotans who have moved or changed banking information since filing their 2021 taxes will have to update their information with the state to receive a rebate check this fall.

The Department of Revenue on Monday opened a portal for eligible Minnesotans to enter their new address or banking details. People who made $75,000 or less in 2021, or up to $150,000 as a married couple, could receive $520 for a couple or $260 for an individual.

Higher rebates could go to parents or those with dependents. A family of five that meets the income threshold could get a $1,300 tax rebate overall.

For those with new information to file with the state, revenue officials have set a July 28 deadline to update. Revenue Commissioner Paul Marquart said most people won't have to do anything to receive the money, since the majority of those eligible haven’t moved or switched banks.

“This rebate will help millions of Minnesotans pay for everyday expenses such as groceries, school supplies, rent, or childcare,” Marquart said in a news release. “We know it will be very valuable to a lot of people, and we look forward to sending payments out in early fall.”

And unlike payments for frontline workers sent out last year, Minnesotans who meet the state’s income requirements won’t have to apply for the payments. Instead, the Department of Revenue will review tax filings for people who lived and worked in the state in 2021 to determine eligibility.

Checks are expected to be sent out or deposited directly early this fall.

Why is it based on 2021 earnings?

The rebates are not going to be considered taxable income at the state level but it’s still an open question if the federal government will take a bite. 

Twenty one states offered rebates in 2022 that were rooted in economic hardship people faced during the pandemic. The Internal Revenue Service determined last year that recipients didn’t have to claim those as income. 

Minnesota tax officials hope that by using 2021 as the income year the same exemption will apply to these payments; a ruling from the IRS is pending.

What if a taxpayer has died since then or a family had more children after 2021?

The rebate law says qualifying taxpayers who were alive after Jan. 1, 2023 are eligible. 

As for dependents, they had to be claimed on the 2021 tax form. And there is a maximum of three for rebate purposes, with an upper limit of $780.

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