Should 2022 $50 Illinois Income Tax rebate check be reported on 2022 federal tax return?

[uk05]

Hello-

I received a $50 rebate check in Sep 2022 from the state of Illinois & I'm inquiring if I need to report this on my federal tax return?

The below illinois.gov link says the rebate is not subject to Illinois state income tax, but may be subject to federal if I itemize my return (which I do not; I'm taking the standard deduction).

Is anyone familiar with if this should be reported (given I'm taking a standard deduction) & if so, how to in turbo tax?

Details about the rebate are in the following link including some tax guidance:

https://www2.illinois.gov/rev/programs/Rebates/Pages/Default.aspx

Is my Illinois income tax rebate or my property tax rebate subject to either Illinois or federal income tax?

The Illinois individual income tax rebate and property tax rebate are not subject to Illinois income tax. If you itemize deductions for federal income tax purposes, the rebates may have an impact on your 2022 federal income tax. Please contact your tax advisor if you have questions about your tax obligations.

What and how much is the individual income tax rebate?

The state of Illinois is providing an individual income tax rebate in the amount of $50.00 per person ($100.00 per couple for married filing jointly) and $100.00 per dependent (limit of three dependents) for taxpayers that have filed their 2021 Form IL-1040 and meet certain income requirements.

Note: The rebate is only allowed if the taxpayer's adjusted gross income for the taxable year is less than $400,000 for returns with a federal filing status of married filing jointly, or $200,000 for all other returns.

[DMarkM1 · Accepted solution]

As you noted, the amount is not taxable since you used the standard deduction for tax year 2021.  As for entering it on your tax forms, it depends.  

If you received a form 1099-G from IL you would enter that form information in the "Wages and Income" section using the "Refund of State/Local taxes" topic.  After entering the form information, you will be asked if you used the standard deduction.  You will say "Yes" and the amount will be non-taxable.  

If you did not get a form 1099-G showing the amount then you do not need to enter it on your tax return.

[uk05]

Thanks for the quick & detailed response, DMarkM1.