The rebate is not taxable for either the state nor the federal return.
The rebate lowers the basis of the vehicle. So if you paid 40,000 for the vehicle, the rebate lowers your cost to 37,500. This is only applicable when you sell it to determine and capital gain. It would also mean a lower depreciation value if you use the vehicle for business.
If this was reported to you on Form 1099-G, keep the copy with your tax file but don't enter the 1099-G into the TurboTax software.
If this was reported to you on Form 1099-MISC, enter the form (so the IRS can match it) then "backout" the income-
Enter the 1099-MISC under
- Wages & Income
- 1099-MISC and Other Common Income
- Income from Form 1099-MISC START
Once that entry is done, go to:
- Wages & Income
- Less Common Income
- Miscellaneous Income, 1099-A, 1099-C
- Other reportable income START
Type " MN REBATE" or something similar for the Description
Enter the same amount AS A NEGATIVE NUMBER (put a minus sign in front (-) )
Both entries will be on Schedule 1 line 12 and result in zero income
Here is a similar question link
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
