On Wed, 12 Apr 2023 18:17:59 EDT, D L wrote:
Hi. I heard that the California Middle Class Tax Refund 2022, is
not taxable. But, I got a 1099 Misc. Is it not taxable by the
state? Or taxable by both. Thanks.
It is not taxable by State or Feds.
The State issued guidance on its website. The IRS dithered for a
while, but eventually declared that it would not be taxable, under
the "general welfare" exception:
<
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax- payments-to-help-taxpayers>
The State issued 1099s anyway, as part of their generally non- taxpayer-oriented way of operating. No doubt they figured that if
they issued one when it was unnecessary _they_ wouldn't have a
problem. It was irrelevant to them that millions of people were at
risk of overstating their taxable income because the State issued an unnecessary form.
In general, not just in this case, just because you receive a 1099
doesn't necessarily mean the money was taxable; and if you don't
receive a form the money might still be taxable. The law is that
you're responsible for stating your income accurately, even if the
payor messes up.
--
Stan Brown, Tehachapi, California, USA
https://BrownMath.com/
Shikata ga nai...
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