Some Minnesota residents received rebate checks in 2023 from the state government. While most states’ stimulus checks during the official portions of the COVID-19 pandemic declaration were not federally taxed (although Minnesota’s Frontline Worker Pay was). As the federal government had changed the pandemic’s official designation before the Minnesota checks were approved (by 15 days), the IRS decided last week that the Minnesota checks will be federally taxable.

Will there be a tax form? Yes, the state of Minnesota will need to issue Form 1099-MISC’s to each recipient. So if you received a check, make sure you also receive the tax form before you start doing your taxes next year. Also, if you’re doing your own taxes, make sure that while you’re taxing those 1099 dollars on the 1040, that you’re taking that income back out on your Minnesota form, as the state won’t be taxing that income.

How much will this tax be? Depending on your rebate check size and the tax bracket you’re in, we’re talking about extra federal taxes of $26-$286.