Democratic Minnesota governor says state's rebate checks getting federally taxed is 'bulls---'

Gov Tim Walz said he's spoken to Biden administration officials to no avail

Democratic Minnesota Gov. Tim Walz blasted the federal government’s decision to tax Minnesotans who receive rebate checks this year as "bulls---" on Wednesday.

Walz was speaking during a news conference about the state’s budget surplus forecast for 2024 when he responded to the IRS's decision to tax its rebate while pandemic-era relief payments in other states were tax-free.

"Bulls---," said Walz. "I don't know. It's the IRS. I will tell you this: I have been on the phone, not much more judicious than that slip there, to let them know."

The federal tax on the rebate check could cost some Minnesota residents between $26 and $286, depending on household income and the total amount of the rebate, MPR News reported. The initial rebates were $260 per person, though qualifying households could see up to $1,300 if a couple claims at least three dependents.

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Tim Walz, governor of Minnesota

Minnesota Gov. Tim Walz said he's spoken to Biden administration officials about the issue, though no progress has been made. (Eva Marie Uzcategui/Bloomberg via Getty Images / Getty Images)

Walz said that he told White House chief of staff Jeff Zients that Minnesotans were "being treated unfairly" because the state missed a cutoff by 15 days to qualify for the tax-free status. 

Other states were able to qualify, since their rebates were authorized before the federal government ended the COVID-19 health emergency on May 11.

Minnesota Governor Tim Walz

Walz said Minnesota missed the authorization cutoff for the rebate by 15 days. (Stephen Maturen/Getty Images, File / Getty Images)

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The Minnesota Department of Revenue said that 1099-MISC forms will be sent to rebate recipients when filing for their federal tax returns, FOX9 Minneapolis reported.

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Meanwhile, the Minnesota budget will remain stable with a surplus of $2.4 billion through June 2025, Minnesota Management and Budget projected.