Minnesotans received a 1099-MISC for the one time tax rebate payment sent in late 2023 prompting upgrade to deluxe!

Forum|Forum|2 years ago
January 30, 2024
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Hello, my husband and I as well as my son received a 1099-MISC for the one-time tax rebate payment sent in late 2023. This disqualifies us from being able to file with free version. This is crazy. They want $78 for deluxe fed and state. We live on disability alone and cannot afford this. All we have is disability income. All my son has is one w-2. And then this one- time 1099-misc. I was on with customer service 3 times and nothing resolved yet. All Minnesotans that got the rebate are going to run into this issue if they usually qualify for the free version. This is so frustrating. I've spent 3 hours today on hold and the last person said to call back if it asks for money. Which it did but I'm still waiting. Help!!! Governor Walz did not want this to be even taxable. What a mess!!!!

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DavidD66

The IRS made a determination that the Minnesota rebates would be treated as taxable income. Therefore you will have to report the 1099-MISC as other income on your federal tax return. The rebates will not be taxed by the state of Minnesota, so you should subtract it from your Minnesota taxable income in the Income Additions and Subtractions section of your state tax return.

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Jared_johnson34

So what you are saying is that when reporting the form for FEDERAL taxes we need to be deducted from the software because it is telling me that I owe $279 in taxes because the 1099MISC was added it deducted it off the standard deduction, I received $260 but your software it is saying that I owe $279.

So it is telling me that I owe more than was received. What the hell is going on?

DavidD66

I am not sure what you are saying about "deducting from the software". You do not deduct the amount reported on the 1099-MISC on your federal return. You do deduct the amount as an adjustment to income for you Minnesota state tax return, as it is not taxable for Minnesota state tax. Reporting $260 of miscellaneous income will not result in your owing $279 in federal tax. If TurboTax is saying you owe $279 in federal tax, then it is the result of something other than $260 of Miscellaneous Income. @Jared_johnson34

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