While there won’t be a new federal stimulus check distribution in April 2024, some Minnesota residents will be receiving a one-time payment from the state. This article clarifies the details surrounding these payments, including eligibility, tax implications, and how the money differs from a stimulus check.
Minnesota Tax Rebates, Not Stimulus Checks
The payments being distributed by the Minnesota Department of Revenue are tax rebates authorized by Governor Tim Walz’s $3 billion One Minnesota Budget. These rebates are not part of any federal stimulus program and are not intended as economic relief measures in response to the COVID-19 pandemic.
The distinction between a tax rebate and a stimulus check is important. Stimulus checks are typically distributed by the federal government during economic downturns to boost spending and support the economy. Tax rebates, on the other hand, are refunds issued by the state based on excess tax revenue collection.
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Who Qualifies for the $1,300 Minnesota Tax Rebate?
The Minnesota tax rebate program offers tiered payouts based on filing status and income. Here’s a breakdown of eligibility:
- Married or Joint Filers: With a maximum gross income of $150,000, these filers qualify for a rebate of $520.
- Individual Filers: With a maximum gross income of $75,000, individual filers receive a $260 rebate.
- Dependents: An additional $260 is added to the rebate amount for each of up to three dependents claimed on a tax return. This means some households with five dependents could receive the maximum rebate of $1,300.
It’s important to note that these are the maximum rebate amounts. The actual amount you receive will depend on your specific income level within the qualifying brackets.
Unclaimed Rebates from 2023 to be Reissued in April 2024
The Minnesota Department of Revenue is aiming to distribute the rebates in April 2024. This includes reissuing checks to approximately 2.1 million Minnesotans who received tax rebates last year via direct deposit or check but did not cash them. The state hopes to have all reissued checks delivered by mid-April.
Rebates Taxable by the IRS
While the state of Minnesota won’t tax these rebates, the Internal Revenue Service (IRS) considers them taxable income for federal tax purposes. Estimates suggest Minnesotans will owe between $26 and $260 in federal taxes on their rebate amount, depending on their household income and the total rebate received.
How to Track Your Minnesota Tax Rebate Status
The IRS offers a tool called “Get My Payment” to track the status of federal stimulus checks and tax refunds. However, this tool won’t be applicable for tracking the Minnesota tax rebates.
For information about your Minnesota tax rebate, you can contact the Minnesota Department of Revenue directly. They may provide an update system shortly, so it’s advisable to check their website for updates.
Key Takeaways
- Minnesota residents, not all Americans, will receive a one-time tax rebate in April 2024.
- The maximum rebate amount is $1,300, but the actual amount received depends on filing status, income level, and the number of dependents.
- These are not federal stimulus checks and are considered taxable income by the IRS.
- Minnesotans who didn’t cash their rebate checks from 2023 will receive reissued checks in April 2024.
- Contact the Minnesota Department of Revenue for information about your specific rebate amount and status.
This information clarifies that the upcoming payments in Minnesota are tax rebates, not federal stimulus checks. While they offer financial support to some residents, it’s crucial to understand the distinction and the tax implications associated with these payments.