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Writer's pictureNels Larsen, CPA, CMA, CFM

State of MN to issue Tax Rebate Payments

The Minnesota Department of Revenue will send direct tax rebate payments for tax year 2021 to eligible Minnesotans after a recent tax law update. The legislation, signed May 24, 2023, provides payments of:

  • $520 for married couples filing a joint return with adjusted gross income of $150,000 or less

  • $260 for all other individuals with adjusted gross income of $75,000 or less

  • Another $260 for each dependent claimed on your return, up to three dependents

You do not have to apply for this payment. We will use 2021 income tax or property tax refund returns to determine who is eligible and issue payments. We expect to send payments this fall.


Who is Eligible

You are eligible if you meet all the following requirements:

  • Were a Minnesota resident for part or all of 2021

  • Filed one of the following returns for that tax year:

    • Form M1, Minnesota Individual Income Tax

    • Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund

  • Filed your return by December 31, 2022

  • Reported adjusted gross income of $150,000 or less for married joint filers, or $75,000 or less for all other filers.

Note: Adjusted gross income is listed on line 1 of Form M1 and Form M1PR.

We will reduce payment amounts for part-year residents based on the percentage of the year they lived in Minnesota.


What Happens Next

We will determine eligibility and payment amounts based on your 2021 Minnesota returns. You do not need to do anything now. It is expected that payments will be issued this fall.


IF YOU...THEN...

Met the income limits and your bank information or address have not changed since filing your 2021 return....

You do not need to take any action. We will deposit the rebate to your bank account or mail a check to the address on your 2021 return.


Met the income limits and your bank information or address have changed since filing your 2021 return.....You will need to update your information with us this summer. We will provide a secure way to update your information online, with details coming soon.


Exceeded the income limits or did not file a 2021 return....You do not qualify for this tax rebate payment.



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