Hundreds of thousands of Minnesota residents are slated to receive rebate checks of $260 in the coming week. The state is reissuing a third round of tax rebates for 128,000 individuals who did not cash their original checks.
Reason for Reissuing
The Minnesota Department of Revenue had initially issued these rebates several months ago, but some recipients failed to deposit the checks within the 60-day window, rendering them void. With the state’s surplus, it decided to redistribute the funds to taxpayers.
Clarification on Payments
The checks were initially overlooked by some recipients, possibly due to confusion regarding the return address from Montana. However, the reissued payments are marked as originating from the state agency, providing clarity for recipients.
Related: Could Fourth Stimulus Checks Be on the Way for Social Security Beneficiaries?
Deadline and Procedure
Recipients are urged not to delay in cashing their rebate checks, as they have a two-year validity period. Failure to claim the rebate may result in the funds being transferred to the Minnesota Department of Commerce’s Unclaimed Property Division.
Tax Implications
While the rebates offer financial relief, recipients are reminded of their federal tax implications, with owing amounts ranging from $26 to $57. This arises from the IRS’s ruling that the payments did not qualify as pandemic aid due to the elapsed time since the pandemic’s onset.
Filing Process
To account for the rebate amount in their 2023 income taxes, taxpayers should reference the 1099 form they received. For any inquiries or concerns regarding rebate status, individuals can contact the department directly.
Related: Details on the $550 and $2400 Stimulus Checks Coming in 2024 – Plus, a Fact Check!
Other State Rebate Programs
Several states, including Alabama, Arizona, and Virginia, have implemented their rebate programs following the conclusion of federal pandemic-era stimulus checks. These initiatives aim to provide financial relief to residents offsetting various tax liabilities.