In the coming week, hundreds of thousands of Minnesota residents are set to receive a $260 rebate check, marking the third round of tax rebates issued by the state.
The Minnesota Department of Revenue is reissuing these rebates to approximately 128,000 recipients who did not cash their original checks within the 60-day window, making them void.
Michael Ryan, a finance expert, described these reissued checks as a welcome financial cushion for individuals, especially during tight budgets.
Some recipients may have overlooked their rebates initially, possibly due to confusion caused by the return address being from Montana. However, the new round of payments will be marked as from the state agency, making them easily identifiable.
Revenue Commissioner Paul Marquart states that recipients now have two years to cash the checks. After this period, any uncashed checks will be transferred to the Minnesota Department of Commerce’s Unclaimed Property Division.
Originally approved as part of a $1 billion program, the remaining payments total $48 million.
Matt Stratman, president of UnitedTax.AI, emphasized the importance of promptly filing these rebates to avoid expiration, as any unclaimed checks will eventually be transferred to the Unclaimed Property Division.
While Minnesota approved these rebates, they faced criticism, particularly regarding the federal tax owed by recipients. The IRS ruled that the payments did not qualify as pandemic aid due to the time elapsed since the pandemic, resulting in additional tax obligations for recipients.
Despite this setback, several states have implemented their rebate programs following the end of federal pandemic-era stimulus checks.
Alabama, for example, issued $300 checks to joint filers last year, funded entirely by a $2.8 billion surplus in the Education Trust Fund. These payments aim to help residents offset grocery taxes paid throughout the year.
In Arizona, taxpayers received tax refunds based on the number of dependents listed, with amounts varying accordingly. Virginians also received rebates ranging from $200 to $400, depending on their tax liability.
As states continue to roll out these rebate programs, it remains crucial for recipients to stay informed and promptly claim any owed payments to avoid potential loss.
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