Resurrecting this discussion because when many of us signed up for the rebates, there was nothing discussing the Fed taxing the rebates as income. Tax season is upon us and MWD asked for W-9 to send out income statements.
The MWD has not fully disclosed whether these are to be taxed as federal income. Considering the money spent to pay someone to remove lawns was paid for by taxed income, the rebate was used to pay a contractor to install a permeable replacement for said lawn and that individual pays income taxes, it seems like the IRS is trying to triple dip on tax revenue asking for the rebate to be considered income.
I know the federal energy conservation rebates in terms of whether they are income or not are specific to everything other than water so the argument seems to be that water conservation doesnt apply (which seems silly considering its the worlds most valuable resource).
