Is The Stimulus Check Payment For 2022 Taxable?

Stimulus Check
Stimulus Check

Recently, the IRS went on to announce some good news to the millions of citizens around the country regarding the federal tax status of some of the special stimulus check payments that had been made by the twenty-one states during the previous year. These payments had been sent through various amounts and under multiple programs- to those residents who had been declared eligible.

The major tax situation around the payments was considered by the IRS to be complex and unique. The department had therefore asked the millions of taxpayers who had received the payments to wait before they filed for their tax returns in 2022- which would allow the agency to decide whether the payments would be considered taxable income. After a review conducted, the IRS declared that it wouldn’t be challenging the taxability of most of the state payments. 

Stimulus Check Payment To Not Be Taxable In Some States

The announcement from the IRS went on to cover multiple categories of the state payments that had been issued in 2022. Initially, the IRS had determined that it wouldn’t be challenging the special state stimulus check payments that had been made in 2022- which were also related to disaster relief and general welfare.

The states which have issued special payments to the citizens are Colorado, California, Delaware, Connecticut, Florida, Idaho, Hawaii, Illinois, Maine, New Jersey, Indiana, New York, New Mexico, Pennsylvania, Oregon, and Rhode Island. Therefore, if someone is a citizen of these states, the IRS will not challenge the tax situation of the state special payments that one has received. 

If one has been a resident of the state where the special stimulus check payments were issued, the IRS is bound to exclude those payments from being considered as a part of the income tax in that state. In the states of Massachusetts, Georgia, Virginia, and South Carolina, the eligible residents did receive some special tax rebates during 2022 that will ideally fall in that category.