[net.taxes] INCOME tax refunds

cwc@mhuxd.UUCP (Chip Christ) (02/26/84)

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I, too, have begun to wonder if I've been reporting as income an
unnecessary item: the annual (bless Brenden Byrne's gracious little
heart) NJ Homestead Tax Rebate.  I've read, over and over, the form
1040s for the past 3 years and they all specifically say INCOME tax
refunds.  Has the tax-man screwed up, or is this just wishful thinking?

					Chip

honey@down.UUCP (code 101) (02/27/84)

property tax rebates should be declared as "other income" (form 1040,
line 21), but only if you deducted the tax last year.  i conducted a
poll last year at this time; about half the respondents indicated that
they cheat, i.e., do not declare the rebate as income.  some people
deduct the rebate from this year's property tax; this is technically
wrong, but has the same effect (except in pathological examples).
	peter honeyman

hrs@houxb.UUCP (H.SILBIGER) (02/27/84)

The Homestead Tax Rebate ( N.J. ) is a rebate on property taxes paid.
This should be reported as "other income" or could be subtracted
from the current year property taxes you are deducting.
I suggest you do the former, because this makes it clear that you
have reported it in case the Sate of N.J. ever reports it.
Not reporting this runs the same risk as not reporting any other
income item. Just because because the aayer has not reported it doesn't
mean you don't owe!
Herman Silbiger

wetcw@pyuxa.UUCP (T C Wheeler) (02/27/84)

and must be reported as such.  They ruled on that one the year it
started.  Thanks for nothing Bubblehead Byrne.
T. C. Wheeler