Submitted By: Denise
Answered: December 2, 2016 1:53 pm

I read that everyone is entitled to a consumer rebate under a 2015 law. Is this true?

Some marketers are touting a “consumer rebate” in order to get individuals to subscribe to certain newsletters or buy other materials. The so-called rebate is nothing more than a tax deduction for state and local sales tax that individuals who itemize can claim if they don’t deduct state and local income tax. To emphasize, there is no special “consumer rebate” in the tax law; there is only an itemized deduction for state and local sales tax. And this deduction cannot be claimed if the individual opts to deduct state and local income taxes.

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Tax Glossary

Withholding

An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.

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