The agency of the IRS has finally announced good news for the citizens of the United States of America. They have stated that the residents of some US states do not need to report the stimulus check received by them as an income. As a result of this, they issue guidelines that will guide Americans as to the tax filing process that is required for this non-taxable stimulus payment.
IRS said on 3rd February that the specific citizens who are liable to taxation under “special tax payment or refunds” provided by the US state government must hold off their tax filing for the year 2022.
IRS Special Tax System For Stimulus Check
IRS made it clear to all Americans one week after this recommendation to not file their tax immediately that some taxpayers need not report these stimulus check payments. However, this IRS decision is also complex and unique.
They mentioned a list of US states whose residents will be exempted from filing their state relief payments for standard taxation. These states are Rhode Island, California, Pennsylvania, Colorado, Oregon, Connecticut, New York, Delaware, New Mexico, Florida, New Jersey, Hawaii, Maine, Idaho, Indiana, and Illinois. In addition, the $662 stimulus check for the people of Alaska is also exempted from tax filing for 2022.
The IRS also gave a list of US states where the residents will be taxed for the stimulus check received from their state government. These states include Virginia, Georgia, South Carolina, and Massachusetts. These states gave rebates based on the taxes paid as result the residents do not need to file this payment as an income.
The agency left out Minnesota that offered bonus payments for healthcare workers in 2022. Further details from IRS are still awaited as people are likely confused.