Tax Rebate Checks Could Be Taxed In Bama

MONTGOMERY, Ala. (AP) - A bill that would exempt the federal
economic stimulus checks from Alabama income taxes is stalled as
the Legislature enters the final six days of the 2008 regular
session.
Internal Revenue Service officials say taxpayers will begin
receiving federal tax rebate checks next week. The checks will be
at least about $600 for most single taxpayers and $1,200 for most
families. But Alabama residents are likely to have to pay some of
that money to the state in taxes.
The bill to exempt the rebates from state income taxes is
waiting to be considered in the House and still must go to the
Senate, with only six days remaining in the current session. The
bill is stalled behind the state's education budget and a
controversial corporate income tax measure.

(Copyright 2008 by The Associated Press. All Rights Reserved.)