Do I need to enter the $400.00 rebate I received from Virginia?

[MaryK4 · Accepted solution]

If you took the standard deduction on your federal return, the $400 rebate is not taxable. 

If you itemized your deductions on your federal return, you may need to report the rebate as income on your 2025 federal return. NOTE: Even if you itemized, the rebate might still be non-taxable if your total state and local taxes (SALT) exceeded the $10,000 federal cap. If subtracting the $400 rebate from your total state taxes still leaves you above that $10,000 limit, the rebate generally isn't taxed.  If you used TurboTax, it will have your 2024 information transferred and will indicate it it is taxable if you enter the 1099-G.