The Minnesota Department of Revenue is gearing up to send out another batch of tax rebate checks, this time making sure they reach their intended recipients. About 128,000 people who qualify for the $260 per person payments will receive them in the coming week. Previous attempts to distribute these rebates failed as the checks went uncashed within the required 60-day window, resulting in voided payments. This latest effort aims to rectify the situation, ensuring that the $48 million in outstanding payments reaches those entitled to them.
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Minnesota Tax Rebate Checks Update: New Measures Implemented as IRS Taxation Sparks Frustration
Unlike the earlier attempts where the checks had a return address from a Montana-based vendor, this time they will be clearly marked as originating from the state agency itself. Revenue Commissioner Paul Marquart assured that the new checks will resemble regular Minnesota state checks, giving recipients a two-year window to cash them. After this period, any uncashed Minnesota Tax Rebate checks will be transferred to unclaimed property.
During a recent Senate Taxes Committee meeting, Marquart provided an update on various tax initiatives, including the rebate program. However, frustration persists over the IRS decision to tax these Minnesota Tax Rebate checks. Recipients are now facing federal taxes ranging from $26 to $57 based on their income tax bracket. The IRS deemed the payments ineligible for pandemic aid since the COVID-19 health emergency had ended.
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Senator Criticizes Oversight of Minnesota Tax Rebate Program; Taxpayers Urged to Act on 1099 Forms
Senator Steve Drazkowski expressed disappointment over the lack of scrutiny given to the rebate program before its passage, highlighting the shared responsibility of the Legislature in overseeing such matters. Marquart acknowledged the unsuccessful lobbying efforts made with the IRS but accepted their decision reluctantly.
Taxpayers who received these Minnesota Tax Rebate checks should have received a 1099 form by now, which they’ll need to file with their 2023 income taxes. The Revenue Department advises those who believe they are entitled to a rebate but haven’t received one by May 1 to contact the agency promptly at 651-556-3000.
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