OCR Text |
Show Give Tax Rebate Back to IRS The Internal Revenue Service has ruled that individuals in-dividuals who itemize deductions must reduce any property tax deduction claimed by the amount of the excess revenue refund received in 1979. If the property tax refund is received in 1980, an individual in-dividual who itemized his deductions in 1979 must include the refund in his. income on his 1980 return if property tax was claimed as an itemized deduction. Renters and individuals who use the federal short form, do not have to pick up the refund as income. Utah short form filers will not ordinarily be affected and will not be required to make any adjustments. The Utah Supreme Court has ruled that the refund is a general fund refund and not a property tax refund, therefore the Tax Commission Com-mission is in the process of appealing the IRS ruling taxing these excess revenue rebates. Until this appeal process is complete, the Tax Commission encourages anyone filing a federal return to follow the current federal tax ruling. In the meantime, in order to abide by the Utah Supreme Court decision, the Utah State Tax Commission has ruled that the amount by which the property tax deduction was reduced on the federal return may be deducted on the state tax return. You may deduct the refund adjustment on Line 12 of the long forms. |