As for getting a 2015 rebate check in the year 2018, one must ask the State of NJ.
2015 Federal Return:
In 2015, I itemized my deductions - I used Schedule A and was able to deduct my entire property taxes from my taxable income. In 2018, when I finally received the NJ rebate check for the property tax year 2015, I must enter the rebate amount on my 2018 Fed 1040 form as state and local refunds. The rebate check amount becomes taxable income on my 2018 fed tax form.
If I did not itemize my deductions in 2015 (did not use Schedule A), I would not have benefitted in 2015 by reducing my taxable income by deducting my entire property tax amount, and therefore would not add the rebate check to my taxable income in 2018.
TurboTax will guide you through this in the state and local refund area. Turbo asks the year of the property tax rebate (my case - 2015). Did I use Schedule A in my 2015 Fed tax return? (yes). Was the entire rebate check amount deducted from my 2015 tax return? (yes). Therefore the rebate check amount becomes taxable income in my 2018 return.
