Direct Tax Rebate Payments
One-Time Refund for Tax Year 2021
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The Minnesota Department of Revenue has finished processing one-time tax rebate payments for eligible Minnesota taxpayers. We issued nearly 2.1 million rebates — totaling nearly $1 billion — under a law passed in May.
We used previously filed 2021 income tax or property tax refund returns to determine who is eligible and payment amounts. Payments were sent by direct deposit or paper check between August 16 and September 27.
On November 13, we began reissuing about 150,000 checks that went uncashed and expired after 60 days from their August and September issuance dates. The reissued checks will be valid for another 60 days.
Rebate Payment is Taxable on Federal Return
The IRS determined this payment is taxable on federal returns. We'll send Form 1099-MISC to all rebate recipients to use when filing U.S. individual income tax returns for 2023. If you include this payment in federal adjusted gross income, subtract it from Minnesota taxable income on line 33 of Schedule M1M on your state return.
Who is Eligible
You are eligible if you met all of the following requirements:
- You were a Minnesota resident for part or all of 2021
- You filed one of the following returns by December 31, 2022:
- Your 2021 adjusted gross income (line 1 of Form M1 or Form M1PR) was:
- $150,000 or less for married joint filers
- $75,000 or less for all other filers
- You were not claimed as a dependent on someone else's 2021 Minnesota income tax return
Taxpayers who died before January 1, 2023, are not eligible. But if an otherwise eligible married couple filed a joint return for 2021 and one spouse died before January 1, 2023, the other spouse is entitled to the full rebate.
The one-time rebate law provided payments of up to $1,300 for eligible taxpayers, including:
- $520 for married couples filing a joint return with adjusted gross income of $150,000 or less
- $260 for all other individuals with adjusted gross income of $75,000 or less
- Another $260 for each dependent claimed on your return, up to three dependents ($780)
For most recipients, we sent the rebate payment to the bank account or mailing address on your 2021 income tax or property tax refund return. If you updated your bank, address, or refund method with us in July, we used the information you provided.
- Direct Deposit: Payments were deposited starting August 16, with most completed that week. The payment will appear as "State of Minnesota 2021 Tax Rebate Program" on your bank statement. Any failed direct deposits were automatically changed to a paper check.
- Paper Check: Checks were mailed starting August 21, with the final checks sent September 27. On November 13, we began reissuing about 150,000 checks that went uncashed and expired after 60 days. The reissued checks will be valid for another 60 days. The checks were:
- Issued by U.S. Bank and sent by Submittable Holdings Inc. — based in Missoula, Montana — who we partnered with on this program.
- Signed by Revenue Commissioner Paul Marquart.
- Mailed in a plain white envelope and protected by standard banking safeguards to help detect and prevent fraud.