Yes, that does belong on your return, as either reducing your rental deductions, or as other income.
It would be ideal to reduce your deduction for real estate taxes by the amount of the rebate, but you can't enter a negative number, so depending on your current deduction, that may not work for you.
If you can't reduce your real estate tax deduction for 2021 you can enter the amount as other income.
- Select Federal on the left side menu.
- Select Income and Expenses toward upper left.
- Expand/ scroll down the list and find the section called, Less Common Income.
- Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
- Select Other reportable income at the very bottom
- Answer the first question Yes.
- Answer Yes and click Continue.
- Enter a description and amount on this page, click Continue.
That will include the income as taxable income and allow you to make a descriptive note.
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