Minnesota Rebate Checks and Child Tax Credit in 2023

Minnesota rebate checks ( also sometimes called Walz checks) have all been sent, according to the Minnesota Department of Revenue. However, approximately 150,000 Minnesota tax rebate checks went uncashed and are now being reissued. The checks were the result of a $3 billion tax relief bill passed earlier this summer. Minnesota Gov. Tim Walz has already signed the massive legislation, which also includes a state child tax credit worth up to $1,750 per child dependent.

“There are really incredible, transformational things in this bill that will benefit people across the state,” said Minnesota Rep. Aisha Gomez. (District 62A), who sponsored the tax bill.

When will Minnesotans receive a rebate check?

All original Minnesota tax rebate payments have already been sent.  Direct deposits were sent first, and checks were mailed through September. Checks were automatically mailed in cases where direct deposits failed. 

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Some of the 150,000 expired checks were reissued earlier this month. Another batch of checks will be reissued in early December.

• Paper checks were sent by Submittable Holdings Inc. (based in Missoula, Montana) and mailed in a plain white envelope.
• Checks are only good for 60 days after the issue date.
• If reissued checks go uncashed, the payments may be handed over to the Minnesota Department of Commerce's Unclaimed Property Division.

.What if I didn't receive a rebate check?

The Minnesota Department of Revenue urges taxpayers who didn't receive check to review the eligibility requirements (see below). Taxpayers who meet the requirements but who did not receive a check can call (651) 565-6595 or email mntaxrebate@submittable.com for assistance.

• Single filers making up to $75,000 received a payment of $260. 
• Joint filers making up to $150,000 received a payment of $520

Child dependents are also eligible for the one-time Minnesota surplus payments. The legislation allows families to receive an additional $260 for each dependent. Families can receive up to $1,300. This means that your rebate payment will not exceed $1,300, even if you have several dependent children. 

• Joint filers qualify for the full $1,300 with three child dependents.
• Single filers qualify for the full $1,300 with four qualifying children. 

Who doesn’t qualify for the Minnesota rebate check? The 2023 Minnesota rebate checks are based on the 2021 tax year, so you must have been a Minnesota resident in 2021 to receive the full payment. Part-year residents may receive a partial rebate (based on income). Additionally, if someone claimed you as a dependent on a 2021 tax return, you won't qualify for the rebate check. Instead, the person who listed you as a dependent in 2021 could receive a payment of $260.

Will my state rebate be taxed? Minnesota will not tax the rebates at the state level. And, Kiplinger recently reported that the IRS has said most one-time state rebate payments in 2023 aren't taxable at the federal level. However, there are cases where taxpayers may need to claim their state rebate amount on their federal tax return (for example, if you itemize deductions and deduct state tax paid). The Minnesota Department of Revenue is seeking clarity from on the question whether the Minnesota rebate is taxable on the federal return.

Minnesota tax relief: What to expect 

Eligible Minnesotans will experience tax relief this year, beginning with the one-time direct payments of up to $1,300.

• The child tax credit of up to $1,750 per child is effective immediately. 
• Families can claim the credit in 2024 when they file their 2023 tax returns. 

What is the Minnesota child tax credit for 2023?

Minnesota doesn't currently offer a child tax credit, but the legislation provides child tax credits of up to $1,750 per dependent. 

• Joint filers making less than $35,000 are eligible for the maximum $1,750 per dependent. 
• All other filers making less than $29,500 are eligible for the maximum $1,750 per dependent.
• Families exceeding the above income thresholds may still qualify for the child tax credit but could see a reduced amount. 

The state's child tax credit became effective the day after the bill became law. So, eligible Minnesotans can look forward to the refundable Minnesota child tax credit when they file their 2023 state tax returns. 

What's in the 2023 Minnesota tax bill? 

As mentioned, the Minnesota tax bill includes a child tax credit and rebate checks. The rebate checks are based on tax year 2021 when pandemic-era stimulus payments and rebates were more common. 

Notably, Minnesota isn't the only state sending stimulus payments in 2023 or the only state increasing child tax credits. For example, New York also passed a budget that expanded the state's child tax credit to include children under 4 years of age. 

The Minnesota tax legislation includes other changes, too. 

• Some taxpayers can look forward to increased renters’ tax credits and property tax refunds. 
• The bill also eliminates income tax on Social Security benefits for single filers making less than $78,000. 
• However, a few tax increases include a reduction in allowable itemized deductions for taxpayers making more than $304,000.

Related Content

• 150,000 Minnesota Tax Rebate Checks Are on the Way — Again
• Who Will Get an Expanded Child Tax Credit This Year?
• Minnesota State Tax Guide
• Which States Are Still Sending Stimulus Payments?