On May 24, 2023, Minnesota signed new tax legislation issuing a one-time rebate payment for tax year 2021.
How much is the rebate payment?
The legislation provides payments of:
- $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 (Additional maximum of $780)
Who is Eligible?
You are eligible if you meet 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:
- 2021 Form M1, Minnesota Individual Income Tax
- 2021 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund
- 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.
What if I am a part-year resident?
Part-year residents receive a portion of the refund based on their time in Minnesota.
How do I apply for the rebate?
You do not have to apply for this payment. The state will use previously filed 2021 income tax or property tax refund returns to determine who is eligible.
When will I receive the payment?
The state will begin issuing payments in early fall. Minnesota expects the nearly 2.1 million rebate payments to be initiated by the end of September, 2023.
Can I track the status of the rebate payment?
No. This rebate payment is being processed outside the usual tax refund processing system so it will not show up in the Where’s My Refund? system.
Do I have to claim the rebate payment on my tax return?
The IRS determined this payment is taxable on federal returns.
This payment is not taxable on your Minnesota income tax return and will not be taken to pay any unpaid tax or debts for other agencies. To deduct the rebate from your State return you will need to make a manual entry in the program. Please go to the
- State Section
- Subtractions From Income
- Subtraction for One-time rebates for tax year 2021 included in Federal AGI.
What Happens Next
According to the state website, "The state will determine eligibility and payment amounts based on your 2021 Minnesota returns. You do not need to do anything now."
|Qualify and your bank information or address have not changed since filing your 2021 return
|You do not need to take any action. The state will deposit the rebate to your bank account or mail a check to the address on your 2021 return.
|Qualify and your bank information or address have changed since filing your 2021 return
|You will need to update your information with the state this summer. The state will provide a secure way to update your information online soon.
|Exceeded the income limits or did not file a 2021 return
|You do not qualify for this tax rebate payment.