Turf Rebate Recipients Will Have to Decide How to Report Funds on Federal Taxes

Southern Californians who received cash rebates for replacing their lawns with drought-tolerant landscaping will soon get a federal tax form in the mail reporting the amount, but water officials said Thursday it is still not clear whether the reimbursement will be taxable.

 

Officials from the Metropolitan Water District of Southern California — which funded a $340-million incentive program — say they are sending 1099 forms to turf rebate recipients of $600 or more and leaving reporting up to participants and their tax advisers.