Tax rebate payments could hit Minnesotans' accounts this week

MINNEAPOLIS -- Minnesotans should keep an eye on their bank accounts -- a deposit could soon be on the way.

The state said it is about to start sending tax rebate payments to Minnesota families. Officials said direct deposit payments will start this week, then paper checks will follow. Up to 700,000 payments are expected to go out on the first day, with the goal of wrapping 1.1 million deposits by the end of this week.

In total, nearly 2.1 million checks will be sent through September.

Taxpayers do not need to apply for the rebate -- the Minnesota Department of Revenue is using information from tax year 2021 to determine eligibility and send payments.

"As Minnesotans plan for back-to-school, we know that the excitement families are feeling is mixed with the stress that comes with buying books, backpacks, and clothes," Gov. Tim Walz said Wednesday. "We're going to help with that - both with payments of up to $1,300 per family and universal free breakfast and lunch. I am grateful for the Department of Revenue's work to deliver these payments to Minnesotans as soon as possible."

Eligibility is based on income. If you made $75,000 or less, expect a check of $260. Couples making $150,000 or less will get $520. Parents in those income brackets will get another $260 per child, for up to three kids. So, the maximum possible credit for a family is $1,300.

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"We know that these payments will take a weight off millions of Minnesotans' shoulders this fall - especially with the start of the new school year," Lt. Gov. Peggy Flanagan said. "These direct payments are a crucial way to put money in the pockets of Minnesotans who need it and empower families across the state to meet their needs on their terms."

Minnesota Department of Revenue Commissioner Paul Marquart says it's not clear yet whether the payments will be subject to federal taxes; they are exempt from state taxes. He said the agency has sought guidance from the IRS counsel about taxability.

The tax rebate payments are part of the $3 billion One Minnesota budget signed into law in May.

Republicans, who were critical of DFL spending of surplus money during the latest session, this week criticized the size of the checks going out, with the House Minority Leader Lisa Demuth (R-Cold Spring) calling them "a fraction of what he promised on the campaign trail."

If you didn't get a rebate check and are eligible for one, state officials say to call a customer assistance representative at 651-565-6595 or email mntaxrebate@submittable.com.