Last month, Minnesota initiated the distribution of direct tax rebate payments, offering individuals the opportunity to receive up to $1,300. Taxpayers who meet the adjusted gross income criteria are set to receive these funds by the close of September. The Minnesota Department of Revenue commenced the disbursement of this one-time tax rebate during the week of August 16.
A significant portion of the state’s population, approximately 2.1 million Minnesotans, stands to benefit from these stimulus checks, which form part of the state’s substantial budget surplus. Enacted into law by Governor Tim Walz (D-MN), this $2 million rebate is calculated based on individuals’ 2021 income tax returns, with the funds being automatically delivered via either a check or direct deposit.
Minnesota’s Stimulus Check: Claiming the Upcoming Rebate
The upcoming rebate is poised to make a significant impact on the lives of countless Minnesotans, offering vital financial relief to cover various everyday expenses. These funds can be a lifeline for individuals and families, helping them meet the costs of necessities such as groceries, school supplies, rent, and child care. The importance of this rebate in supporting the well-being of Minnesota residents cannot be overstated, and it is anticipated to provide substantial assistance as we head into the fall season.
According to Department of Revenue Commissioner Paul Marquart, “This rebate will help millions of Minnesotans pay for everyday expenses such as groceries, school supplies, rent, or child care. We know it will be very valuable to a lot of people, and we look forward to sending payments out in early fall.” Commissioner Marquart’s words underscore the tangible benefits this initiative will bring to individuals and families across the state.
Can the Minnesota stimulus check be used to pay off debts?
Yes, the Minnesota stimulus check can be used to pay off debts. However, it’s important to note that these checks are exempted from garnishments, levies, and executions. This means that if you owe money to creditors, they cannot forcibly take your stimulus check to pay off the debt. This exemption was issued by Minnesota Governor Tim Walz as part of an executive order, which applies to stimulus payments received after May 4, 2020.
That being said, you’re free to use your stimulus check to pay off debts voluntarily. In fact, a significant number of Americans have used their stimulus checks for this purpose. According to a survey by the Surveys of Consumers at the University of Michigan, 45% of families used their stimulus check primarily to pay off debt
The Eligibility Criteria to Get Your Check Now
Eligibility for the one-time rebate is inclusive, encompassing all Minnesotans who resided in the state during the year 2021 and filed either an income tax return or a property tax refund. The income threshold for eligibility stands at $75,000 for single filers and $150,000 for married couples who filed jointly. As part of this program, single filers are poised to receive $260, while married couples will receive $520.
Furthermore, an additional $260 per dependent, for up to three dependents, is allocated. This means that married couples with the maximum number of dependents could potentially receive up to $1,300 in financial assistance, further enhancing the impact of this rebate on their financial well-being.
The administration of this tax rebate represents a departure from the conventional system through which the state usually manages tax refunds. As a result, taxpayers will not have the ability to track the specific progress of their rebate through the standard channels. While this may differ from the customary approach, Minnesota officials have put mechanisms in place to ensure that individuals who anticipate receiving a payment are not left in the dark regarding their rebate status.
Should any taxpayer find themselves in a situation where their expected rebate has not been issued by the time October rolls around, they are strongly encouraged to reach out to the department’s dedicated customer service operations. This proactive step will enable taxpayers to seek clarification on the status of their rebate, address any potential concerns, and ensure that they receive the financial support they are entitled to in a timely manner.
In essence, while the process for disbursing these rebates may deviate from the norm, the commitment of Minnesota officials to providing assistance and transparency remains unwavering. Contacting customer service operations if necessary is a practical and accessible means of ensuring that every eligible recipient receives their deserved rebate, thereby upholding the program’s core objective of providing essential financial relief to those in need.
What Expenses Can the Minnesota Stimulus Check Cover?
Currently, there are no restrictions on buying anything with these stimulus checks. For example, you can use them to buy groceries, fruits, vegetables, non-alcoholic beverages, and much more. Consider that these payments are designed to stimulate the local economies of cities and localities (hence the name). Also, you are able to buy some other important need, such as school supplies, or childcare costs, while you can even pay your rent with it.
Will the Minnesota stimulus check be taxable?
These payments are not taxable on your Minnesota income tax return and will not be taken to pay any unpaid tax or debts collected by other agencies. However, the Minnesota Department of Revenue has requested guidance from the IRS to determine if the rebate is taxable on your federal return.
The payments are being processed outside the usual tax refund processing system and will not appear in the Where’s My Refund? platform. They are being sent via direct deposit first, followed by paper checks in the mail. The Department of Revenue expects to issue all rebate payments by the end of September.
If you have any further questions or doubts, you could get in touch with Minnesota’s Department of Revenue at 651-565-6595 (8:00 a.m.- 4:30 p.m. Mon.- Fri).
Other Tax Credits Available for Minnesotans
In a move aimed at stimulating investment in startups and small businesses, Minnesota’s Angel Investment Tax Credit has been granted an extension, securing its availability until the end of tax year 2024. This extension comes with a substantial appropriation of $5 million per year, providing a boost to angel investors looking to support emerging ventures.
The recent legislative changes also bring significant modifications to tax credits benefiting families. The Child Tax Credit (CTC) has been expanded to a generous $1,750 per child under 18, and there’s no longer a cap on the number of eligible children. However, the credit gradually phases out for couples filing jointly with incomes exceeding $35,000 or for individual filers with incomes above $29,500. Additionally, a new Dependent Care Credit for newborns allows all taxpayers, including unmarried ones, to claim credit for newborn children, even if they don’t have dependent care expenses.