Shock as MN Governor Clashes with IRS Over Surprise Tax!

It's safe to say that Minnesota Governor Tim Walz isn't happy with the IRS' decision to tax rebate checks.

At a news conference to speak about the budget surplus forecast for 2024, Walz was asked about the federal government's decision to tax the rebate checks that went to all Minnesotans earlier this year.

Walz responded by calling the tax "Bullsh!@", and went on to say "I don't know. It's the IRS. I will tell you this: I have been on the phone, not much more judicious than that slip there, to let them know."

How Much Could Minnesotans Owe in Tax on Rebate Check?

Nearly $1 billion was sent in over 2 million rebate checks to Minnesotans, amounts for the rebate checks ranged from $260 to $1,300, and depending on the amount of the rebate check, each person who got a rebate could be responsible for $26 - $286 in tax.

The Minnesota Department of Revenue says, "The IRS determined this payment is taxable on federal returns. We'll send Form 1099-MISC to all rebate recipients to use when filing U.S. individual income tax returns for 2023. If you include this payment in federal adjusted gross income, subtract it from Minnesota taxable income on line 33 of Schedule M1M on your state return."

State officials are frustrated that the IRS has decided to tax the rebate after 22 states were told in 2022 that any state payments did not have to be reported on federal taxes. The federal government also decided to tax Minnesota’s frontline worker payments in 2022.