The Internal Revenue Service is urging millions of Americans to delay filing taxes in states that issued tax rebates last year.
"There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex," the IRS said in a statement. "We expect to provide additional clarity for as many states and taxpayers as possible next week."
Many states authorized special tax rebates last year for tax surpluses or inflation. The IRS is weighing whether to tax those federally.
"For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional," the IRS said.
Nineteen states enacted one-time refunds in 2022, including California, Colorado, Georgia, New York, and Hawaii. About 16 million California residents received "middle-class tax refund" checks of $350 per eligible taxpayer as part of a relief package to help fight soaring inflation.
"While this is unusual, this kind of determination in the middle of tax season isn’t unprecedented," Adam Brewer, a tax attorney with AB Tax Law in San Diego, told Nexstar. "In 2021, the IRS exempted the first $10,200 of unemployment benefits received in 2020 after many taxpayers had already filed their income taxes and reported the income as taxable. This mid-tax season rule change may be following that precedent."
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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