Is Georgia EV tax rebate reported as taxable income?

[rag8501]

I leased my Leaf in 12/2013 and claimed the Georgia tax credit when I filed in 2/2014.
I called Georgia EPA, IRS, checked forums. No clear answer.
My tax consultant says the rebate amount claimed in 2014 is taxable.
I finally filed returns last week and waiting for refund. My 2014 tax refund is significantly reduced.
Is my tax consultant right? Any GA residents with similar experience?

 

[LightningLeaf]

I think your tax consultant got it reversed.

There is a HUGE difference between tax credit and tax deduction.

Tax credit is used to offset or reduce your taxes directly, in this case Georgia state tax.

Tax deduction is used to offset or reduce your taxable income. For example, home mortgage interest deductions.

We only get a rebate in California, not a tax deduction nor credit.

Hopefully someone will post the process of claiming the tax credit.

 

[CmdrThor]

I leased my Leaf in 12/2013 and claimed the Georgia tax credit when I filed in 2/2014.
I called Georgia EPA, IRS, checked forums. No clear answer.
My tax consultant says the rebate amount claimed in 2014 is taxable.
I finally filed returns last week and waiting for refund. My 2014 tax refund is significantly reduced.
Is my tax consultant right? Any GA residents with similar experience?

Any state tax refund you received in 2014 will be taxable on your 2014 federal taxes if you itemized your deductions in 2013 (and deducted your state income taxes). You should have received a 1099-G for this.

 

[LightningLeaf]

My bad on the reply, got the tax year mixed up.

See http://blog.turbotax.intuit.com/2007/02/24/is-my-state-tax-refund-taxable-and-why/" onclick="window.open(this.href);return false;

 

[rag8501]

I received 1099G with the refund amount and I do itemize every year.
So you don't really get to keep the total $5000 amount after all. It would be $5k minus the federal tax(deducted the following year).
Thanks for the responses. That answered my question.