During 2022, various states used pandemic monies from the federal
government to issue tax payments. They called them, variously, rebates
and refunds.
Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New
Mexico, Oregon, Rhode Island, South Carolina, and Virginia
Each state is handling it differently. In Virginia, it's reportable and taxable if the taxpayer itemizes but it's not reportable if the
taxpayer takes the standard deduction.
In my state, Illinois, it's not taxable. There were two rebates, one for income taxes and another for property taxes (to the property owner if
the primary residence).
At the federal level, are these treated the same way as tax refunds,
that is, reportable by taxpayers who took an itemized deduction for
state taxes paid during the previous year?
Are they reportable as income in some other way?
As the payments may not be the same type of income from one state to the next, will IRS guidance be different from one state to the next?
Not only has IRS yet to issue guidance, they've requested that affected taxpayers wait to file till guidance is issued.
IRS urges special refund recipients to delay filing taxes
By ADRIANA MORGA
AP
2/7/2023 https://apnews.com/article/illinois-state-government-california-virginia-internal-revenue-service-f505d4e2ebac314fdc21fd5b16815998
IRS Statement - Taxability of State Payments
2/3/2023 https://www.irs.gov/newsroom/irs-statement-taxability-of-state-payments
--
I trust most here saw the following from the IRS yesterday:
"The Internal Revenue Service will not collect federal taxes against >state-issued inflation relief payments or tax refunds, the agency said >Friday, a reprieve for tens of millions of taxpayers who received the >subsidies."
See >https://www.washingtonpost.com/business/2023/02/10/irs-taxes-state-inflation/
honda....@gmail.com <honda.lioness@gmail.com> wrote:
I trust most here saw the following from the IRS yesterday:
"The Internal Revenue Service will not collect federal taxes against >state-issued inflation relief payments or tax refunds, the agency said >Friday, a reprieve for tens of millions of taxpayers who received the >subsidies."
See >https://www.washingtonpost.com/business/2023/02/10/irs-taxes-state-inflation/
Actually, I hadn't looked for it. Thanks
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
On Sat, 11 Feb 2023 15:39:07 EST, Adam H. Kerman wrote:
honda....@gmail.com <honda.lioness@gmail.com> wrote:
I trust most here saw the following from the IRS yesterday:
"The Internal Revenue Service will not collect federal taxes against >>>state-issued inflation relief payments or tax refunds, the agency said >>>Friday, a reprieve for tens of millions of taxpayers who received the >>>subsidies."
See >>>https://www.washingtonpost.com/business/2023/02/10/irs-taxes-state-inflation/
Actually, I hadn't looked for it. Thanks
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
That page from the IRS repeat "2022" a zillion times. Some of the
payments from the FTB in California were issued in 2023 - mine among
them, naturally. Am I safe to assume, since this was part of the same
program that the IRS has now ""blessed", albeit issued late, that I
will exclude it from my 2023 return?
Sysop: | Keyop |
---|---|
Location: | Huddersfield, West Yorkshire, UK |
Users: | 300 |
Nodes: | 16 (2 / 14) |
Uptime: | 36:17:51 |
Calls: | 6,707 |
Files: | 12,239 |
Messages: | 5,353,434 |