Tax Tips: Will I have to pay state tax on my federal tax rebate check?
Filed under: Tax
As everyone eagerly awaits their "economic stimulus" checks from the federal government, scheduled to begin mailing in May, there's a bit of bad news coming. Each state must decide whether or not they are going to tax the rebate check you get. There is no law prohibiting the states from considering it taxable, and some states surely will.According to the blog Don't Mess With Taxes, Alabama has said they're taxing the rebate, while New York, Oregon, California, and Iowa have said they are not. Obviously, we've got a ton of other states that must still weigh in on the issue. But don't be surprised if your state decides to tax you... the politicians are always looking for an excuse to get further into your pockets!
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.
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Reader Comments (Page 1 of 1)
3-09-2008 @ 5:13PM
SUE said...
Do I have to send Sch A with the 1040 Stimulus Payment to mail? They just have SS.
Reply
3-10-2008 @ 8:12AM
SUE said...
Odd SS form: I xs the SS by 12 and got the total, but overlooked the Medicare and only put a month on it. How or do I fix it. As long as I have the total of SS on The StimulusPayment does it matter on the Medicare? He has already sent it off. Do I amend it?
Reply
3-12-2008 @ 12:12PM
Dorris said...
If I am on government assisant ,will the amount that I would be getting be deducted for recieving the rebate?
I need to know soon.
Thanks ,
Dorris Ponstingl
Reply
3-12-2008 @ 4:01PM
Laura Climer said...
How do go about getting this rebate ?? Do i have to fill out a form?? I do get my real estate tax back now. Some have told me that if i get them back then i do not have to fill out anything. Sincerely Laura Climer
Reply
3-12-2008 @ 5:21PM
Joanne said...
I retired from the federal government in 2006 under the old CSRS retirement system. I receive a pension check every month. I am wondering if I will get the 2008 Stimulus Rebate.
Reply
3-13-2008 @ 5:51PM
joe said...
it is a sad and unetical that a state wants to tax this money , when the reason for this money is to stimulate the economy.
Reply
3-18-2008 @ 6:32PM
Grandma Jin said...
To file this year after not filing for over 10 years, age 83, and only Social Security as income, which form is best to use? 1040A? 1040EX, or which? Thanks
Reply