What's happened
The IRS has declared that state tax rebates sent to over 2 million Minnesotans will be subject to federal income taxes, potentially costing taxpayers between $26 and $286 each.
Why it matters
The ruling by the IRS will impact over 2 million Minnesotans, potentially costing them additional federal income taxes on their state tax rebates.
What the papers say
AP News reports that the IRS has declared the state tax rebates will be subject to federal income taxes, despite pleas from state officials. The Times also covers the story, providing additional details about the federal tax bite and the lobbying efforts by state officials to reverse the decision.
How we got here
The ruling by the IRS comes after the state Department of Revenue sent a form to all recipients to use when filing their federal individual income tax returns, indicating that the payments are not subject to state taxes.
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