Should One Pay Income Taxes For The Stimulus Check Payment Received In 2022?

0
88
Stimulus check

It has been well-documented that close to 50 million citizens in the USA received stimulus check payments in 2022- and now the IRS has finally decided upon which of the payments would be taxed on a federal level. On the 3rd of February, the IRS went on to recommend that individuals who had been issued special payments or tax refunds by the state governments should ideally wait for any extra clarification before they decided to file for their 2022 return.

The agency further provided that clarity just a week after that announcement- indicating that the taxpayers in most of the states will have no need of reporting any of the payments. But since it is the IRS that has been involved in this scenario, it can often get quite complicated. 

You Wouldn’t Have To Pay Taxes On Your Stimulus Check Payment

As we all know, there were no stimulus check payments issued in 2022, but around 22 states did give the money back to the residents of the state- primarily through property tax rebates, income tax rebates, direct relief payments, and child tax credits. The following states received some form of credit payments– Alaska, Colorado, California, Connecticut, Florida, Delaware, Hawaii, Georgia, Idaho, Maine, Indiana, Illinois, Massachusetts, New Jersey, Minnesota, New Mexico, Oregon, New York, Rhode Island, Pennsylvania, Virginia, South Carolina.

For those wondering, it is Alaska that issued the biggest payment to the citizen- a sum of $3,124 to every eligible child and adult in 2022 under the Permanent Fund Dividend. But California was the state with the most payments- around 31,650,000 Middle-Class Tax Refunds had been issued by the Franchise Tax Board. 

The IRS recently decided to not ask the taxpayers to declare any of the stimulus check payments that were related to disaster relief or general welfare- which would also include the payments that had been tied to the pandemic.