|
I should add that it is an allowance, not a rebate - a typical rebate may be treated as "cash back" so that, in the state's view, it's money you are getting and then immediately spending, so you pay tax on that. This "allowance" is more like a "discount" - it's not cash you could theoretically choose to take with you, so it's not money you are spending. Sorry if that isn't a great explanation - point is, if your CA is treating it as a rebate and doing the calculation so that you would pay tax on the amt of this allowance, that is incorrect.
|