Your 'Walz Check' Will Be Federally Taxed, IRS Decides

MINNESOTA — The Internal Revenue Service on Wednesday announced its decision to tax the rebate checks — otherwise known as "Walz check" — sent to Minnesotans earlier this year.

"The IRS determined this payment is taxable on federal returns," states the Minnesota Department of Revenue on its website.

"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."

Minnesota's elected officials have already protested the IRS' decision.

"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,” Craig wrote in a letter to IRS Commissioner Danny Werfel.

"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."