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These States Could Tax Your Recovery Rebates Source: taxfoundation.org - Apr 21, 2020 Americans are receiving rebate checks as part of the federal government’s economic response to the COVID-19 crisis—but in a few states, at least some of those checks could be taxed. Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, up to $1,200 rebates are provided for individuals ($2,400 for joint filers), with an additional $500 for each qualifying child, with the benefit phasing out for higher earners. Designed as a refundable tax credit, they do not constitute taxable income at the federal or state level. But due to a quirk of some tax codes, they could increase your income tax liability in six states: Alabama, Iowa, Louisiana, Missouri, Montana, and Oregon. Category: General Business |
