Are The Stimulus Check Payments Taxable?

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Stimulus check

Around 20 states have already authorized multiple stimulus check payments to their residents in the face of exorbitant inflation, but are these payments taxable? This answer matters quite a lot to the Internal Revenue Service, the tax preparers, as well as the state tax authorities after 20 states issued the payments the previous year.

Most importantly, the answer to this also applies to the American citizens who have been hoping to hang on to every single penny while the rates of inflation are quite warm even after coming off from the boiler plater it was at the previous year. The list of states that have already issued the rebates includes Arkansas, Colorado, California, Georgia, Delaware, Hawaii, Illinois, Idaho, New York, Indiana, South Carolina, Oregon, and Virginia. 

The IRS Could Be Taxing The Stimulus Check Payment

The federal tax collector recently gave a statement where they stated that the IRS was definitely aware of the questions that involved the special tax refunds or the stimulus check payments that had been made by the states in 2022. In fact, the entire department was working with the state tax officials to provide some clarity, and information to the taxpayers. The IRS also stated that it was expected to give clarity to the states as well during this week. In the meantime, taxpayers who have no clue about tax rules should wait for the extra guidance or simply check in with a tax professional. 

The IRS has advised people to wait for guidance rather than calling the agency all at once. They also added that everyone who has already filed an income tax return for 2022 shouldn’t file for an amended return for the stimulus check payments. It is believed that the legislative labels for the payments and the state-specific levels will lead the IRS to assess in the tax under certain cases.