Is the Rebate Check going to be taxable on the 2008 Tax Return??
According to the IRS, "Taxpayers will not be taxed on the Tax Rebate Checks as it is a form of a Tax Credit." Hence, Taxpayers would not be including these payments on their 2008 federal income tax return.
All Taxpayers should keep a copy of the IRS letter that they will receive later this year listing the amount of your payment. This is because in the the event the taxpayer does not qualify for the full amount this year, he or she may do so the following year. The IRS wants taxpayers to keep "the letter as a record of the amount you previously received."