Nearly all Minnesota rebate payments by direct deposit are complete, checks now being sent out

Many Minnesota residents began receiving their tax rebate payments over the last week. The Minnesota Department of Revenue has updated the number of payments that have been sent out.

At the start of the distibution, according to a spokesperson for the department, the state estimated they would need to send 1.15 million rebates through direct deposit and an additional 950,000 payments by paper checks. However, the number of paper checks will change due to direct deposit attempts that failed or were kicked back.

Through Wednesday, Aug. 23, the state had attempted to issue roughly 1.1 million direct deposit payments. Out of those attempts, 50,000 failed, or were kicked back, resulting in those payments now needing to be issued by paper check.

The state had also mailed out 170,000 checks to Minnesotans as of Wednesday.

RELATED STORY: How the distribution of the Minnesota tax rebate checks works

According to the department’s spokesperson, the IRS still hasn’t issued a ruling on whether the rebates will be taxed at the federal level.

Earlier in August, Gov. Tim Walz announced the payments of up to $1,300 per household — $260 for individual filers or $520 for married couples, along with another $260 apiece for up to three dependents. The governor said the payments would begin beign sent out that same week to more than two million households.

However, state officials say payments would be sent out throughout the month of September.

The Department of Revenue says it is starting with payments to those who had direct deposit set up when filing their 2021 tax year documents with the state.

If you didn’t have direct deposit set up for that tax season, you will be mailed a paper check. You will also get sent a paper check if a direct deposit gets kicked back for various reasons, including if bank or address information wasn’t updated earlier this year with the state.

In order to be eligible for the rebate payment, you have to meet multiple requirements:

  • Be a resident of Minnesota in 2021 and filed a renter’s property tax refund or a homestead credit refund by Dec. 31, 2022.
  • File a tax return for 2021.
  • Not be a dependent on anyone else’s 2021 tax return.
  • Not have an adjusted gross income of more than $150,000 for joint-filers or more than $75,000 for single-filers.

If you haven’t received a payment by the end of September, you’re asked to contact the Department of Revenue.

The rebates are part of a payment plan approved during the last legislative session in the tax bill.