Her tax rebate check from the state of Minnesota bounced. Here's what happened.

Not long after it arrived in the mail, Todd Syring's daughter went into the bank to cash a $260 check she received as part of the state of Minnesota's $1 billion tax rebate program.

She was surprised when the check bounced. The reason given by the bank? Insufficient funds.

This could be happening to other Minnesotans trying to cash a second round of rebate checks from the state that went out in mid-November and early December.

Those checks were issued by a company called Submittable Holdings Inc. in Missoula, Montana after some 150,000 Minnesotans either didn't receive or didn't cash the initial round of checks. But those reissued checks were only good for 60 day and expired in early February, said Department of Revenue spokesman Ryan Brown.

Syring said the check from Montana only arrived in February, which could have been caused by delays in the mail. He tried asking U.S. Bank why the the check bounced but didn't get any answers.

"Different banks have different codes/memos for when a check is denied," Brown said in an email. "Some say insufficient funds, others say expired check or something along those lines."

Minnesota Democrats included the rebates in a $3 billion tax cut and increase package passed last spring. Individuals with an adjusted gross income of up to $75,000 in 2021 were eligible for a rebate of $260. Married filers with income up to $150,000 were eligible for $520. Families could also get an additional rebate check for up to three dependents, for a maximum of $1,300.

The state finished issuing checks to nearly two million residents in September before starting to reissue uncashed checks.

This week, the state started its third round of reissued checks. They plan to send 128,000 one-time tax rebate checks that have gone uncashed and subsequently expired. The mailing of reissued checks should be completed by mid-March.

Unlike the first two rounds of checks, the new ones will be mailed from the State of Minnesota and will be good for two years.

Brown said if eligible Minnesotans haven't gotten their rebate by May 1, they should contact the Department of Revenue.

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