According to the New York Times, the I.R.S. is saying to hold off on filing your federal income tax return if you are a person that received a one-time special payment from your state last year. Since there are a variety of state programs that distributed these payments in 2022 with complex rules, there is some confusion about whether the payments are taxable.
- According to a list compiled by the Tax Foundation, taxpayers in how many states will probably be affected?
- If you use Turbo Tax, what is that company saying?
- Why is there so much frustration about the taxability of these special payments?
- Are disaster relief payments taxable?
Bernard, T.S. (2023) I.R.S. Tells Millions Who Received State Rebates: Don’t File Just Yet. The New York Times, Feb. 9 (Retrievable online at https://www.nytimes.com/2023/02/09/your-money/irs-state-tax-rebates.html)