MN one-time tax rebate

Forum|Forum|2 years ago
April 2, 2024
1 reply
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I filled out the Federal income without adding the 1099-MISC for the "rebate" by accident. When I go back and add it, it raises my "Federal Tax Due" by $200 and my "MN Tax Due" by $50 (MN is decreased again once I add it in the state forms). Why would a rebate of $780 raise my fed tax due by $200, that cannot be correct.

LeticiaF1

Adding income can increase your tax due. To see if those amounts lets make sure that you enter the income correctly on the tax return. Because you are adding income you missed you will have to amend your return. Before you amend make sure that your original return has been fully processed by the IRS, this means that you have received your refund or that you have already paid if you had a balance.

To amend your return:

Log in to your TurboTax account
Go to Tax Home
On the FAQ's on the right side, select How do I amend my return?
The option of Amend Using TurboTax will show, select it.

The program will guide you as you make the changes necessary, you do not need to enter anything other than what you are changing.

To enter the rebate follow the instructions below to enter your tax rebate.

Launch TurboTax and select Wages and Income
Scroll down to Other Common Income and select Start by 1099-MISC
Enter your 1099-MISC and select Continue
Enter MN Rebate for the description and Continue
On the Does one of these uncommon situations apply? screen, select None of these apply
On the Did this involve work that's like your main job? screen, select No, it didn't involve work like my main job
On the How often did you get this income? screen, select I got it in 2023 and Continue
On the next screen, select No, it didn’t involve an intent to earn money and Continue
On the next screen, select No, if you don’t have any more forms to enter and Continue

You will see the income on line 8z with a description of Other Income (which will flow to line 8 of your 1040). When you pay for TurboTax, you will be able to view your forms.

Follow the steps below to deduct your MN tax rebate from your income so you won’t pay state tax on it:

Select Prepare State from menu on left side and select Start
Select MN and select Continue
Scroll through the screens and when you get to Tell Us About Other Income Adjustments, select Received a one-time tax rebate for tax year 2023 from the State of Minnesota and select Continue
Enter the Rebate Payment Amount