Rebates will make some tax returns more complicated

Tuesday, February 14th 2006, 10:04 am
By: News On 6

The federal government is taxing the state tax rebate that most of us got last year.

The state of Oklahoma sent $45 and $90 checks out to more than a million homes last December.

The rebate counts as income for federal taxes and because there's no line for it on the simplest tax forms, everyone who got a check has to use the most complicated federal form.

Sheri Alsup with Liberty Tax Service: "You have to file the 1040 this year if you received the rebate, you can't use the A or 1040EZ." News on 6 reporter Emory Bryan: "Isn't that a lot of people?" Alsup: "That's a lot of people, yes."

The rebates totaled $92-million. Since it's subject to federal tax, more than $6-million of it will go straight to Washington DC.