From the AP:
Property tax rebates must be reported on federal tax returns
New Jersey may have just delivered the largest amount of property tax relief ever to beleaguered homeowners, but that won’t stop the taxman from coming next spring to snag some of it back.
Property tax rebates averaging $1,051 were recently mailed to 2 million homeowners as part of an enhanced New Jersey program to help homeowners with America’s highest property taxes. The rebates are nearly five times more than ones sent last year.
But taxpayers who filed itemized returns and took a deduction for property taxes must report the rebates as income on federal tax returns, the Internal Revenue Service said.
The rebate money is designed to alleviate the property tax burden, though taxpayers can do whatever they want with it since it comes by a check.
Property tax reimbursement payments aren’t taxable by New Jersey and shouldn’t be reported on the New Jersey income tax return, the state Treasury Department said.
But IRS spokesman Gregg Semanick said property tax reimbursements must be reported on federal tax returns if taxpayers deducted their property taxes.
This really isn’t new news is it?
Im not that impressed, I would have rather it gone to debt payments or something, anything.
Think of the cost of handling the money.
This is not tax advice nor is it accurate, in fact it’s not even a rec, but I’ve never reported that rebate on my return and have never gotten a notice.
Think of the cost of handling the money.
I’ve heard estimates that the printing and mailing of rebate checks cost over $10 million.
jb
comming soon – online title company
http://www.titlewizard.com/
Folks, I give you an $80,000 price drop on a $600K house:
MLS 2424985
http://homes.realtor.com/prop/1085016233
Price history:
Jul 11, 2007: $715,000
Sep 16, 2007: $679,000
Sep 28, 2007: Attorney Review
Oct 09, 2007: Active
Oct 09, 2007: $599,900
Can you say Comp Killer?
Can you say Comp Killer?
Shutters on the front door, but not on the windows?
7 They’re hunkering down for when the neighbors come to lynch them for reducing the price.
Then again, if you’re making any REAL money, the rebate is a moot point as far as income goes. If you’re into Quantum Physics and the workings of the AMT, chances are your property taxes weren’t as deductible and thus the rebate not being reportable on your return the next year anyway.