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.

Tax Glossary

Active participation

Test for determining deductibility of IRA deductions. Active participants in employer retirement plans are subject to IRA deduction phase-out rules if adjusted gross income exceeds certain threshold.

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