Discussion:Is Rebate Taxable Income
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Discussion Forum Index --> Advanced Tax Questions --> Is Rebate Taxable Income
Discussion Forum Index --> Tax Questions --> Is Rebate Taxable Income
| 7 March 2008 | |
| Although it seems that the rebate should be taxable to those taxpayer who never pay taxes, California announced today that the rebates will not be included in California gross income. | |
| 7 March 2008 | |
| Even its not included in the CA gross income, the portion we are receiving currently or in the month of May for the rebate is a 2008 estimate. So if we receive more then we should have; we don't have to pay it back, but if we receive less then we should have, we will be credited it in 2008 (the difference) | |
| 2008-03-07 | |
| IRS says it won't reduce your 2008 refund nor it will increase what you might owe. | |
| 8 March 2008 | |
| Yes, the IRS press release said that, but we have all seen Sec. 6428 and know that the 2007 Stimulus Rebate received reduces the 2008 Stimulus Credit. | |
IDrinkYourMilkshake (talk|edits) said: | 8 March 2008 |
| Correct, extra credit given, so your normal refund or liability would not be changed. | |
Wkstaxprep (talk|edits) said: | 8 March 2008 |
| is rebate taxable? - No!
That should really end this question :) Folks its really that simple. Get back to 2007 tax prepping, lol :) Will | |
| 8 March 2008 | |
| Wkstaxprep, not really sure that it is that simple. For those individuals who never pay taxes, the rebate would probably constitute gross income. However, the Service may choose to grant an exclusion on "Public Policy" or "General Welfare" grounds. | |
| 8 March 2008 | |
| (CalifCPA's remark was a California State tax question, not a federal question) | |
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