NV-2005-10, Oct. 7, 2005

NEVADA - The Internal Revenue Service today posted guidance regarding the federal taxability of the 2005 rebates issued by the State of Nevada. Taxpayers will receive a statement from the IRS with their check and can also find a detailed fact sheet online at the IRS Web site.

To access the information online, simply enter “Nevada Rebate” into the “Search for…” section on the front page of www.irs.gov. This will lead to a link that provides the necessary guidance. The same fact sheet can also be found under the “Nevada” state link in the “Around the Nation” section of IRS.gov accessible from the “Newsroom” link on the front page.

“This guidance should make it easier for folks to understand the potential federal tax implications,” said Raphael Tulino, IRS Spokesman for Nevada.

The fact sheet answers some common questions and offers direction. Several factors may affect the rebate’s taxability, including whether or not a taxpayer registered a vehicle with the Nevada DMV in 2004, and if any registration paid amounted to more or less than $75. Advice is given to both individual and business taxpayers.

The fact sheet also provides specific examples and, if taxable, where to report the rebate as income on a 1040 federal tax return. 

Link:

Nevada Tax Rebates - Fact Sheet on the Taxability of 2005 Nevada Rebates