I applied for and received the Nebraska school district property tax credit as part of my 2021 state taxes (credit received in 2022). I deducted the full amount of the property tax paid (business deduction) when filing my federal 2021 taxes. Do I need to include the amount received for the credit as income when I file my 2022 federal taxes?
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I believe I found the answer.
Yes, the tax credit is taxable at the federal level.
Refer to following link
https://rosenblumgoldenhersh.com/tax-court-rules-on-taxation-of-refundable-state-credits/
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