NJ Homestead Rebate

[Dave1314]

How do I deal with the NJ Homestead Rebate on my tax form? Do I put down the total of my property taxes and list the rebate as miscellaneous income? Do I just list the amount I paid out of my own pocket as my property taxes and not list the rebate amount?

[IsabellaG · Accepted solution]

See this link : http://www.state.nj.us/treasury/taxation/irssaver.shtml

The IRS says that you need to report your rebate as income on your return if you itemized and claimed Real Estate Taxes in 2015, and got a tax benefit from the deduction. Just as you do with your State tax refund. Report this as Miscellaneous Other Income.

But this isn't taxable for your NJ return, so you'll need to take a subtraction for it when working on your state return.

http://www.state.nj.us/treasury/taxation/treatment03.shtml