Congress Passes $42.4 Billion Consumer Rebate Program-Misleading!
Summary of eRumor:
Congress recently passed a $42.4 billion Consumer Rebate Program that allows taxpayers to cash in with a tax return on nearly every purchase they made.
There’s some truth to reports about a $42.4 billion Consumer Rebate program that was approved by Congress in 2015 — but claims about cashing in on it are misleading.
Taxpayers have been able to receive an itemized deduction for state income tax or state sales tax since 2004 through what was a temporary provision of the tax code. In 2015, Congress voted to make it permanent at an estimated cost of more than $42.4 billion over the next 10 years.
CPA Annette Nellen explains at SalesTaxSupport.com that itemized deductions for state sales tax would generally “work well for individuals in states without an income tax” — but, as always, tax code is extremely complicated and nuanced. You should talk to a tax professional about what the itemized state sales deduction could mean for you.
There are a number of websites that are trying to sell consumers on the idea that they can purchase a booklet that explains how to cash in on the so-called “$42.4 billion Consumer Rebate Program” that Congress “just” approved. Do not pay a private company like this for tax advice. Rather, discuss your options with a licensed CPA.