IRS plans to tax Minnesota's rebate checks

(St. Paul, MN) -- Minnesota does not plan to tax state rebate checks, but the IRS will.

The federal government says the checks are taxable income. The tax could be between 26 dollars and 286 dollars, depending on a household's income and how much they got in rebates.

The state plans to send a form to all rebate recipients when filing their federal income tax return next year. The forms are expected to be sent to around 2.1 million Minnesotans. However, individuals who don't have federal tax liabilities will not pay taxes on the one-time rebates.