Tax on Clunker Cash???

[68X426]

Anybody seen, heard, and can verify the hot rumor that the IRS has determined that the Cash for Clunkers money will be taxed as income to the recepient? (I'm not affected, but I do know people who joined in the fun).

The discussion of whether it is a fair tax or not is another matter. Just wonder if somebody has seen a definitive yes or no.   

[nh_mopar_fan]

No. It's not considered taxable income.

http://www.cars.gov/faq

Is the credit subject to being taxed as income to the consumers that participate in the program?

NO. The CARS Act expressly provides that the credit is not income for the consumer.

[68X426]

Thank you for the info and link, my friend will be pleased. 

[greenpigs]

So will my sister.