Personal Finance

If You Received A 'Walz Check,' You Need This Form For Your Taxes

The state mailed out "Form 1099-MISC" to all rebate recipients to use when filing U.S. individual income tax returns for tax year 2023.

MINNESOTA — The Internal Revenue Service announced in December that it will tax the rebate checks — otherwise known as "Walz checks" — that were sent to Minnesotans earlier this year.

As a result, on Jan. 17, the state mailed out "Form 1099-MISC" to all rebate recipients to use when filing U.S. individual income tax returns for tax year 2023.

"The amount reported on this form is your One-Time Tax Rebate Payment sent in late 2023 by either direct deposit or check. 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," the letter states.

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Minnesota's elected officials have already protested the IRS' decision, to no avail."Minnesota is being treated unfairly in this," Gov. Tim Walz told MPR News.

Rep. Angie Craig also slammed the IRS’ decision: "I’m concerned that Minnesotans are being treated differently than residents from other states and further concerned regarding this inconsistency of IRS guidance,” she in a letter to IRS Commissioner Danny Werfel.

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"My office routinely handles IRS casework for constituents, and it would be unfortunate if this decision created additional unnecessary hardship and confusion for Minnesotans."

Craig's office also noted that Minnesota "already pays nearly $7 more in federal taxes for every $1 it receives back."

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