Posted on 02/13/2023 12:55:14 PM PST by EVO X
If you qualify for special checks or rebates related to either tax surpluses or inflation in 2022, you might want to hold off on filing your tax return, the Internal Revenue Service (IRS) says.
The agency is clarifying whether these special state tax rebates should be taxed federally, an IRS spokesperson tells CNBC Make It.
(Excerpt) Read more at cnbc.com ...
And two days after this article the IRS announced:
The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022.
Two categories of refunds:
If the payment is a refund of state taxes paid
If a payment is made for the promotion of the general welfare or as a disaster relief payment
See link for details
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
from the footnote from my link above
2] Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment.
What is a "special" check?
And who qualifies? ILLEGALS?
Thanks for the quick update. Looks like the IRS got immediate blowback..
Billions to Ukraine not included.
I have no idea. It is amusing that Biden IRS would be willing to screw over blue stat voters...
We should declare them as dependents. 😏
in california there was a gasolice price relief check.
however, it came in 2023.
so by accounting principles (?) (which?), it seems as if it should be reported as ty 2023 income (?).
standard disclaimer: i am not an accountant, nor do i play one on TV
Massachusetts was forced by law to refund 14% of all income taxes paid because of an obscure law from 1982 that no one thought would ever be invoked. It requires the state to refund any unspent funds to taxpayers in proportion to the amount taxed. Since I took standard deduction, and did not deduct State Income Tax, I simply treated it as I would an income tax refund, which, as far as I am concerned it was.
I filed at the end of January (downloading 1099’s and W-2’s) and got my refund last week.
Bookmark
The IRS “ruled” on the issue last Friday the 10th....no need to report state tax/inflation rebates/relief payments as income:
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
Good to know. Thanks for posting!
If the government doesn’t send you a 1099 form or W-2 or whatever, then it must not be income.
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