Minnesota Governor Tim Walz expressed his strong disapproval of the federal government’s decision to tax Minnesotans who receive rebate checks this year. During a news conference about the state’s budget surplus forecast for 2024, Governor Walz called the move “bullsh–” and criticized the Internal Revenue Service (IRS) for treating Minnesota differently than other states.
The federal tax on the rebate check could impose a financial burden on Minnesota residents, with potential costs ranging from $26 to $286, depending on household income and the total amount of the rebate. Initially, rebates were set at $260 per person, while qualifying households could receive up to $1,300 if they claimed at least three dependents.
Governor Walz has been actively engaged in addressing this issue, speaking to White House Chief of Staff Jeff Zients and Biden administration officials. However, no progress has been made so far. He emphasized that Minnesotans were being treated unfairly due to missing a cutoff by 15 days to qualify for tax-free status, while other states were able to do so because their rebates were authorized before the federal government ended the COVID-19 health emergency on May 11.
The Minnesota Department of Revenue confirmed that rebate recipients will receive 1099-MISC forms when filing their federal tax returns. This tax requirement adds an additional burden to Minnesotans who were expecting the rebate as a relief during these challenging times.
Despite this setback, the Minnesota budget is projected to remain stable, with a surplus of $2.4 billion through June 2025, according to Minnesota Management and Budget.
This IRS decision has raised concerns among Minnesota residents and highlights the disparities in tax policies between states. Governor Walz’s strong reaction reflects the frustration felt by many Minnesotans who believe they are being unfairly targeted by the federal government. Efforts to address this issue are ongoing, as the governor continues to advocate for fair treatment and relief for his constituents.
