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 ($780)

You do not have to apply for this payment. The Minnesota Department of Revenue will use previously filed 2021 income tax or property tax refund returns to determine who is eligible and issue payments in early fall. There is no appeals process, and the payment cannot be tracked in our Where’s My Refund? system.

Please Note: If your address or bank information have changed since filing your 2021 return, you will need to update your information through the Minnesota Department of Revenue secure online portal by July 28, 2023.

MN Department of Revenue online portal

This payment is not taxable on your Minnesota income tax return and will not be taken to pay any unpaid tax or debts collected for other agencies. The Minnesota Department of Revenue has requested guidance from the IRS to determine if the rebate is taxable on your federal return, and will relay their decision when they receive it.

Who is Eligible

You are eligible if you meet all of the following requirements:

• You were a Minnesota resident for part or all of 2021
• You filed one of the following returns by December 31, 2022:
  • 2021 Form M1, Minnesota Individual Income Tax
  • 2021 Form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund
• Your 2021 adjusted gross income (line 1 of Form M1 or Form M1PR) was:
  • $150,000 or less for married joint filers
  • $75,000 or less for all other filers
• You were not claimed as a dependent on someone else’s 2021 Minnesota income tax return

Taxpayers who died before January 1, 2023, are not eligible.

Part-year residents receive a portion of the refund based on their time in Minnesota.

What Happens Next

The Minnesota Department of Revenue will determine eligibility and payment amounts based on your 2021 Minnesota returns. You do not need to do anything now.

Let us exceed your expectations. Contact your CDS expert at (888) 388-1040 with any questions.