Minnesota started sending out direct tax rebate payments of up to $1,300 last month, and taxpayers who met the adjusted gross income requirements will see their funds by the end of September.

The Minnesota Department of Revenue began to issue the one-time tax rebate the week of Aug. 16 and a total of 2.1 million Minnesotans could benefit from the checks that are part of the state's multibillion-dollar budget surplus. Signed into law by Gov. Tim Walz (D-MN), the $2 million rebate will be based on Minnesotans' 2021 income tax returns, and the money will be automatically distributed either by check or direct deposit.

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“This rebate will help millions of Minnesotans pay for everyday expenses such as groceries, school supplies, rent, or child care,” Revenue Commissioner Paul Marquart said. “We know it will be very valuable to a lot of people, and we look forward to sending payments out in early fall.”

All Minnesotans who lived in the state in 2021 and filed an income tax return or property tax refund are eligible for the one-time rebate. The adjusted gross income limit is $75,000 for single filers and $150,000 for married couples who filed together. Single filers will see $260, and married couples will receive $520, with $260 per dependent, up to three, meaning married couples with the maximum number of dependents could see up to $1,300.

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The tax rebate is being handled outside the typical system in which the state processes tax refunds, so taxpayers cannot track where their rebate is. However, officials encourage those who expect a payment to contact the department’s customer service operations if the rebate is not issued by October.