Is property tax relief taxable?I'm assuming that my escrow account paid my property taxes, but I got acheck for property tax relief of $268 because the school district complied with the state's property tax cap. There is no information as to whethe

Some questions:

1. Did you file with the Standard Deductions last year? If "yes", then you do not need to report this income.

2. If you itemized deductions last year, was the amount of your Itemized Deductions less the Standard Deduction greater than $268? If "yes", then the entire $268 is taxable.

3. If you itemized deductions last year but the difference between your Itemized Deductions and the Standard Deduction is smaller than your $268, then the taxable amount is computed as your $268 plus the Standard Deduction minus the Itemized Deductions.

If you have taxable income as a result, then do one of the following:

If you have current year property taxes, then subtract the $268 from your current year taxes that you place into Itemized Deductions (go to Federal Taxes->Deductions & Credits->Property Taxes).

If you do not have current year property taxes, then please go to

• Federal Taxes->Wages & Income->Less Common Income
  
• click on "Miscellaneous Income, 1099-A, 1099-C".
  
• start the interview
  
• click on "Other reportable income".
  
• Add an entry for your property tax refund.
  

[Edited 02/08/2017 11:07 pm CST]