Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Something that's non-taxable. As I understand the saga, you didn't get an income tax refund, and the property tax rebate you received is for property you don't own and, thus, don't pay taxes on.

Yeah, I agree it *should* be non-taxable, but I'd like to know what it *is*, so if I get a letter from the IRS about it, I can defend it :). I guess I was hoping Ira would say "yeah, $10 of your property tax rebate is actually considered 'return of capital' due to something-something, so $30 is right". No such luck! Guess I'll call on Monday.

And, by the way, in NJ renters still receive a NJ property tax rebate - as well as deduction/credit - (although a small one) because a portion of rent is considered to cover property taxes.

So yeah, as a non-homeowner, I couldn't deduct it on my federal return, so it definitely shouldn't be taxable on my federal return this year.

One new detail:
Looking over my 2007 NJ return, the *only* amount I see of "30" is the total of my charitable contributions through the return. But that would be a deduction, not an amount to appear on a 1099-G box 2.

I guess the most likely explanation is NJ just messed up the amount of my property tax rebate?

My only question, which I thought Ira would address, is whether that is considered to reduce your 2008 NJ taxes paid, but if you don't itemize on your 1040 the question is moot anyway.

Does this answer your question Phil? :)
It seems to be treated as recovery from the previous year.

However, of interesting note, that says NJ will not issue a 1099-G for property tax rebates. So now I'm even more confused.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.