States and rebates update

The California Franchise Tax Board has announced that it won’t collect taxes on the federal economic stimulus payments.

Golden State officials also want to reassure residents about their state filing responsibilities, or more specifically, their non-filing duties. If you don’t meet California state income tax filing requirements, then you don’t have to file that paperwork even if you’re filing a federal 1040 to qualify for the federal rebate.

You can read the official California FTB announcement, with links to other useful state tax pages, here.

Iowa, too: Similar good state tax news comes from the Hawkeye State.

The Iowa Department of Revenue reminds residents that if they don’t have to file a state return, that’s fine. It has no bearing on their federal filings done just to get their share of rebate money.

Also, although it’s not an official done deal, Iowa officials have announced that pending legislative action will mean that refund rebate money will not need to be reported on 2008 Iowa income tax returns.

As for Iowa businesses, the Department of Revenue notice says that the state is expected to adopt the federal stimulus package’s Section 179 expensing increase, but the state’s tax laws probably won’t conform to the 50 percent bonus depreciation adjustment for assets acquired in 2008.

The full Iowa notice can be viewed here.

The count so far: Right now, we have Alabama "yes" on taxing the federal rebate and, in the "no" column, New York Oregon, California and Iowa.

Now isn’t tracking state rebate tax tallies much more fun than toting up Clinton/Obama delegates!

All together now, "Yes we can keep that good no-state-tax news coming!"