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Department of Revenue will start reissuing over 128,000 expired one-time tax rebate checks next week

ST. PAUL, Minn. – The Minnesota Department of Revenue announced today that they will be reissuing over 128,000 one-time tax rebate checks that have gone uncashed and subsequently expired after their November and December issuance dates. The mailing of reissued checks will start next week and should be completed by mid-March.

What do the checks look like?

Unlike previously mailed checks, these will be mailed from the State of Minnesota. The checks are still protected by standard banking safeguards that help detect and deter fraud.

Is the one-time tax rebate taxable?

This rebate payment is not taxable on your Minnesota income tax return.

The Internal Revenue Service determined this rebate to be taxable on the federal return. Due to this decision, all rebate recipients were sent a Form 1099-MISC to use when filing their 2023 individual income tax returns. If you include this payment in your federal adjusted gross income, subtract it from Minnesota taxable income on line 33 of Schedule M1M and on line 10 of Form M1PR on your state returns.

What if an eligible taxpayer still has not received a rebate?

We will work with taxpayers who are eligible but did not get their rebate. If a taxpayer thinks they are eligible and didn’t receive a rebate by May 1, 2024, they should contact the department at 651-556-3000.

Get the latest news and updates from the Minnesota Department of Revenue by following the department on Facebook and X (formerly Twitter) or by signing up for our email subscription list.

Tax Law Changes
2021 Tax Bill Enacted July 1
Minnesota tax code changes were signed into law on July 1, 2021. The changes relate to unemployment compensation, Paycheck Protection Program (PPP) loan forgiveness, and other retroactive provisions affecting tax years 2018 through 2020.

Taxpayers do not need to do anything at this time.

Form and System Updates in Progress
We're updating Minnesota tax forms and working with tax software providers to update their systems to reflect these tax law changes. Do not file any amended returns relating to retroactive provisions in the tax bill until forms are updated. We will communicate when updated forms are available.

Unemployment Compensation and PPP Loan Forgiveness
If you filed a 2020 income tax return that included unemployment compensation or PPP loan forgiveness, wait to hear from us. Depending on your return’s complexity, we will either adjust it and issue you a refund, or we will ask you to amend your return. We'll let you know later this summer.

If we can adjust your return: We'll send you a letter describing what we changed and any refund you may receive as a result. We are committed to adjusting as many returns as we can.
If you need to amend: We'll send you a letter about amending your return. Do not file an amended return before hearing from us

Caution: The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act of 2021. The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return, including the retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

How does the $10,200 tax waiver work?

As part of the American Rescue Plan, many taxpayers wouldn’t be required to pay taxes on up to $10,200 in unemployment benefits received last year. The exclusion is up to $10,200 of jobless benefits for each spouse for married couples.

So it's possible that if both lost work in 2020, a married couple filing a joint return might not have to pay federal income taxes on up to $20,400 in jobless benefits.

For households having income up to $150,000.

Talk to your Tax Professional if you have yet to file your taxes or if you will need to file an amended return.

Happy Tax Season!