scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Nov 20, 2009
- Messages
- 6,703
You would have a reduction in the itemized expense, thus a reduction in itemized deductions. If it occurs mid year during the tax year, as ours did, seems like taxes would catch it the first go around.
Or was our rebate for prior year?
Oh, well, not itemizing medical anyway. Nor do I pay state taxes.
When mine came in a later year after the actual (deductible) premiums were taken, I included the rebates as "Other Income" as described it on the 1040 form.
A few years ago, I received 2 property tax rebates, one for a prior year and one for the current year. The prior year one I had to add back as income. The current year one I subtracted from the deductible property taxes shown on Schedule A. As I was putting together my taxes, I had originally added both of them back as income, not realizing right away they applied to different tax years. After I made this fix, my total tax bill actually dropped by about $100 because the ACA premium subsidy is based on (M)AGI, and my (M)AGI dropped when I applied the second rebate as an offset to the current year's property tax deduction. Kinda unfair that I get penalized simply because I get a rebate after the tax year instead of during the tax year, huh?
It's all moot now because I don't itemize any more due to the recent tax law change.