How is the property tax credit taxed on your federal return?

Schedule A lists deductions to include :





1st mortgage interest , property tax , medical costs above a ceiling ( 7% I think )





http://search.irs.gov/web/query.html?col...





Also union dues , tools for work , charity . . .





Schedule B is income from interest and dividends .








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How is the property tax credit taxed on your federal return?
It can be taxed but usually isn't. If you didn't itemize and deduct real estate taxes, you don't show the credit as income. If you do itemize, you either reduce the deduction for real estate taxes by the amount of the credit, or claim the rebate as income for the year received.

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