Do I have to pay tax on my 2008 Middle Class STAR rebate amount when I file my 2008 income tax return?
While many taxpayers do not pay tax on the rebate amount, the rebate will impact your taxable income in two instances.
If you itemize your deductions when you file your 2008 income tax return, you must deduct the rebate from your property taxes paid.
If your rebate is greater than your property taxes paid, you must include the excess amount as income on your 2008 income tax return.
Please keep the STAR rebate check stub for your records.