Georgia 2023 tax rebate

[AndrewA87]

Do we need to include the 2023 Georgia Tax Rebate as income on our 2023 federal tax return?

[DoninGA]

If you used the 2022 Standard Deduction on your 2022 federal tax return, the rebate is not entered on a 2023 federal tax return.

[AndrewA87]

So in 2022 I owed Georgia money and I also got a tax rebate of $500.00 and Turbotax for 2023 it has 0 in the refund amount ... is that correct? Do I need to enter the $500.00?

[DavidD66 · Accepted solution]

The IRS has determined that tax rebate payments from Georgia, Massachusetts, South Carolina, and Virginia are taxable if the payment was a refund of state taxes and the individual itemized and received a tax benefit.  As DoninGA mentioned previously, if you used the Standard Deduction on your 2022 federal tax return, you do not report the $500 "refund"/rebate. In addition, if you itemized and your state and local taxes pad exceeded the $10,000, then the refund is not taxable if the excess was $500 or more.  If it was less than $500, then a portion of the refund would be taxable.  Bottom line, if you did not itemize and instead claimed the standard deduction, you can ignore it!