MN Tax Rebates Sent Out This Fall Will Be Taxed By the Federal Government

The Federal Government is taking a cut from most of the Minnesota Tax Rebates sent out this fall, meaning a $26 to $286 handover, depending on the size of a household’s initial payout. 

The Minnesota Department of Revenue failed to convince the IRS to treat the rebate as it had the pandemic era checked delivered by other states, which were able to send money to their residents tax free.

Gov. Tim Walz voiced frustration at the outcome, using an expletive when asked about it and saying he had been in touch with the White House.

A recipient of a $260 payment could owe between $26 and $57, for a household that got $1,300, the federal tax bill could range from $130 to $286.