IP 98(8)

Q & A: The 1998 Connecticut Tax Rebate

PURPOSE: This Informational Publication is intended to answer commonly-asked questions about the 1998 Connecticut tax rebate.

STATUTORY AUTHORITY: 1998 Conn. Pub. Acts 110, §2.

WHAT IS THE 1998 TAX REBATE?

In May of 1998, the Connecticut General Assembly and Governor John G. Rowland enacted legislation that will return a portion of the state’s budget surplus to Connecticut taxpayers in the form of a one-time tax rebate. Under this legislation, over one million Connecticut taxpayers will receive a tax rebate. The Department of Revenue Services is administering the rebate program.

WHO IS ELIGIBLE FOR THE 1998 TAX REBATE ?

To be eligible for a 1998 Tax Rebate, you must have:

• filed a 1997 Connecticut income tax return by May 1, 1998, or by October 16, 1998 if you filed a timely extension request; and
• paid a Connecticut property tax on a primary residence or motor vehicle in 1997. The property tax must have been both due and paid in 1997 to a Connecticut municipality or taxing district. This includes payments in 1997 of any supplemental property tax bills that were due in 1997. This does not include payment of the second installment of a property tax bill that was first due in 1996, even if you paid it in 1997, nor does this include payments in 1997 of any delinquent property tax bills that were due before July 1, 1997.

Note: If you did not pay any Connecticut property tax in 1997, you do not qualify for the tax rebate.

HOW MUCH WILL MY REBATE BE?

The maximum amount of a rebate will vary depending on a taxpayer’s filing status; however, in no case will a rebate be less than $50. The Connecticut General Assembly has established the following rebate schedule:

• $75 for single taxpayers or married taxpayers filing separately;
• $120 for head of household taxpayers; and
• $150 for married taxpayers filing jointly.

Generally, your rebate will equal the amount of your 1997 income tax liability that remains after taking the property tax credit, or the maximum rebate for your filing status, whichever is less. However, as noted above, in no case will a rebate be less than $50.

WILL MY REBATE BE SUBJECT TO "OFFSET?"?

Yes. Your rebate may be reduced by certain unpaid obligations you may have to Connecticut state agencies or certain other taxing authorities. You will be notified if your rebate is reduced for any reason.

Note: If only one spouse owed a debt to a Connecticut state agency, a non-obligated spouse must complete Form O-AR 120 to claim a share of the joint rebate.

WHEN WILL I GET MY REBATE?

Taxpayers who filed their 1997 Connecticut income tax returns by May 1, 1998, will be mailed their rebate checks by July 31, 1998. All remaining rebate checks will be mailed by December 15, 1998.

DO I NEED TO CONTACT THE DEPARTMENT OF REVENUE SERVICES?

No. In most cases, the Department of Revenue Services has all the information it needs to calculate and issue taxpayers their rebates. The Department of Revenue Services will contact you if additional information is required. If you have any questions, about the 1998 tax rebate, contact the Taxpayer Services Division, Monday through Friday during business hours at 1-800-382-9463 (in-state) or 860-297-5962 (anywhere).

ARE NONRESIDENTS AND PART-YEAR RESIDENTS ELIGIBLE FOR A REBATE?

Yes. If a nonresident or part-year resident satisfies the criteria set out above, he or she may be eligible to receive a rebate.

WHO MUST COMPLETE A REBATE ‘98 TAX FORM?

The Department of Revenue Services will automatically send a Rebate ‘98 Tax Form to certain residents, part-year residents and nonresidents who filed a 1997 Connecticut income tax return by May 1, 1998 (or by October 16, 1998, if they filed a timely extension request), but who did not claim the property tax credit. Anyone who receives a Rebate ‘98 Tax Form from the Department of Revenue Services must complete it and return it to the Department in order to receive a rebate.

WILL MY REBATE BE SUBJECT TO CONNECTICUT INCOME TAX?

For the 1998 taxable year, if the rebate is properly includable in your gross income for federal income tax purposes, any amount rebated to you must be subtracted from your Connecticut adjusted gross income. (More information on how to report this modification on your 1998 Connecticut income tax return will be provided in the 1998 Connecticut income tax booklets.)

WILL MY REBATE BE SUBJECT TO FEDERAL INCOME TAX?

If you itemized your deductions for federal income tax purposes, then your rebate must be reported for federal income tax purposes on your 1998 federal income tax return. The Department of Revenue Services will mail rebate recipients who itemize their deductions a Form 1099-G by January 31, 1999, notifying them of the amount that must be included on their 1998 federal income tax return.

EFFECT ON OTHER DOCUMENTS: None affected.

EFFECT OF THIS DOCUMENT: An Informational Publication is a document that addresses issues frequently raised by taxpayers, usually in a question-and-answer format. It is less technical in nature than a Policy Statement, but may be referred to by individual taxpayers for guidance.

RELATED FORMS AND PUBLICATIONS:

IP 97(9), Q & A Income Tax Credit for Property Taxes Paid to a Connecticut Political Subdivision

Form O-AR 120, Non-obligated Spouse Tax Rebate Form 

IP 98(8)
1998 Tax Rebate
Issued: 07/06/98