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IRS Press Release
Don't Forget: "Oklahoma Taxpayer Relief" Rebate Checks of $45 or $90 Are Taxable
The Internal Revenue Service reminds Oklahoma taxpayers who received a $45 or $90 “Oklahoma Taxpayer Relief” rebate check from the State of Oklahoma late last year that the amount is taxable and should be reported as income on the recipient’s federal individual income tax return for 2005.
With some exceptions, all Oklahoma residents who filed a State of Oklahoma individual income tax return as an individual or as a married person filing separately in 2004 received a payment of $45. Residents who filed as a surviving spouse, a head of household or as married filing jointly in 2004 received a payment of $90.
By law, the State of Oklahoma was not required to provide recipients with an information document – normally a Form 1099G -- after the beginning of the year 2006. As a result, many payment recipients may not have remembered they received the check, or that it was taxable for federal income tax purposes.
“It’s been a while since the checks were issued, so many taxpayers may forget to include the amount as income when they file their federal income tax returns for 2005,” says IRS spokesman David Stell. “It should be reported as ‘other income’ on line 21 of Form 1040.”
Taxpayers who received such a rebate check and are filing a traditional, paper tax return must use the Form 1040, as neither the Form 1040A nor the Form 1040EZ includes a line upon which to report “other income.” Those who use IRS e-file to file electronically need not worry about which form to use as the amount will be properly included when categorized as "other income" and entered into the electronic filing software.
“There is no correlation between this payment and whether or not the taxpayer itemized deductions last year,” said Stell. “If you received a check, it is taxable income.”
In the case where a taxpayer has already filed his or her 2005 federal individual income tax return and failed to report the amount of the rebate received, an amended tax return should be filed before April 17, 2006, to avoid penalty or interest charges resulting from any underpayment of taxes. The form to use is IRS Form 1040X, Amended U.S. Individual Income Tax Return. It’s available at no cost by calling the IRS at (800) TAX-FORM, or by visiting the IRS online at www.irs.gov.
Taxpayers who would like more information about the rebate itself may visit the State of Oklahoma Treasurer’s website at www.treasurer.state.ok.us/rebate. Also, a news release explaining the rebate can be found at www.tax.ok.gov/upmin111705.html.
Taxpayers with questions about their federal tax return filing may visit the IRS online at www.irs.gov, or call the IRS, toll-free, at (800) TAX-1040, during the hours of 7 a.m. until 10 p.m., Monday through Friday.