Just the previous week, the IRS went on to inform the taxpayers who had received a stimulus check payment from the state back in 2022 to stop themselves from filing their tax returns. They had been asked to halt because the agency had been trying to determine how the payments would be done from a tax perspective.
Recently, the IRS went on to confirm that taxpayers will not be needed to report the state stimulus payments as a part of their taxes in 2022. As it has been well-documented, quite a large section of the population had been struggling to deal with the rise in gas prices in 2022. States who had excess funds after spending their budgets stepped up and kept offering stimulus payments and rebates to eligible residents.
Stimulus Check Payment Will Not Be Taxed By The IRS
In the beginning, it was pretty unclear if the stimulus check payments would be counted as a part of taxable income, and hence the filers were further urged to delay the tax returns until the agency could sort the procedure out. But the IS then went on to release an update claiming that in the interest of administration and several other factors, the taxpayers in most of the states of the country will not have to report the payments on their tax returns for 2022.
It was announced that the states of Alaska, Colorado, California, Connecticut, Florida, Delaware, Hawaii, Illinois, Idaho, New Jersey, Maine, New York, New Mexico, Pennsylvania, Oregon, and Rhode Island would not have to report the payments under the tax returns for the year.
Now, while the IRS has already determined that the stimulus check payments will not really be taxable for the tax year of 2022, the agency could easily change the tune for the funds that will be received in 2023.