I.R.S. Tells Millions Who Received State Rebates: Don’t File Just Yet
“If you’re one of the millions of taxpayers who received a one-time tax payment from your state last year, the Internal Revenue Service has some advice: Hold off on filing your federal income tax return. Even though tax season started on Jan. 23, the I.R.S. is still determining whether the payments — sent last year to taxpayers in nearly two dozen states as a way to provide relief from spiraling inflation — should be treated as taxable income on their federal returns. Late last week, the I.R.S. said it was working with state tax officials and expected to provide more guidance ‘for as many states and taxpayers as possible’ this week. ‘There are a variety of state programs that distributed these payments in 2022, and the rules surrounding them are complex,’ the I.R.S. said in a statement.”