Are Cash for Clunkers Rebates Taxable?
Cash for Clunkers may be over, but its swath of confusion rolls on unabated. Keloland reports that South Dakotans are being told that their clunker rebates are taxable as income. “They didn’t realize that would be taxable. A lot of people don’t realize that. So they’re not happy and kind of surprised when they find that out,” says Minnehaha County Treasurer Pam Nelson. Omaha.com reports that clunker rebates are also liable for state income tax hits of $192.50 to $247.50 depending on the amount of the rebate. Nebraska city sales taxes also apply. Surely other states will be making announcements about local arrangements, but in the meantime, where is the confusion coming from? The cars.gov website’s FAQ holds the key. “Is the credit subject to being taxed as income to the consumers that participate in the program?” CARS asks itself. “NO,” is the answer. “The CARS Act expressly provides that the credit is not income for the consumer.” Unless it is. Have fun with that.swine flu protection Tamiflu Hemorrhoid flu prevention signs
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