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.

advertisement
Tax Glossary

Investment interest

Interest on debt used to carry investments, but not including interest expense from a passive activity. Deductions are limited to net investment income.

More terms