How is the property tax credit taxed on your federal return?

Question

How is the property tax credit taxed on your federal return?

Answer 1

Schedule  A   lists  deductions  to  include :

1st  mortgage  interest ,  property  tax ,  medical  costs  above  a  ceiling ( 7%   I   think )

http://search.irs.gov/web/query.html?col...

Also  union  dues ,  tools   for  work ,  charity .  .  .

Schedule  B  is  income  from  interest  and  dividends .

>

Answer 2

It can be taxed but usually isn't.  If you didn't itemize and deduct real estate taxes, you don't show the credit as income.  If you do itemize, you either reduce the deduction for real estate taxes by the amount of the credit, or  claim the rebate as income for the year received.