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Did You Pay Taxes On State Money Last Year? Taxpayers Must Await IRS Action

While tax season has already been underway for a few weeks, the Internal Revenue Service advises residents of almost two

While tax season has already been underway for a few weeks, the Internal Revenue Service advises residents of almost two

While tax season has already been underway for a few weeks, the Internal Revenue Service advises residents of almost two dozen states to delay submitting their returns.

The IRS has not yet decided whether or not tax returns should be filed on money provided to residents of those states as part of a tax rebate or inflation relief payment last year.

Richard Auxier specialises in tax policy. He is the resident tax expert at Washington, DC’s Urban-Brookings Tax Policy Center and gets calls from perplexed taxpayers.

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Dont Send In Your Taxes Just Yet If You Live In One Of These 19 States: IRS

The Internal Revenue Service advises citizens of the 19 states that issued one-time tax payments or refunds in 2018 to put off filing their taxes until 2022.

The organisation issued a statement saying it collaborates with state tax officials to offer further details “as promptly as feasible.”

The IRS noted the complexity of the laws governing the many different state programmes that dispersed these payments in 2022.

We hope to clarify things to as many states and taxpayers as possible next week. Director of tax content and government relations at the National Association of Tax Professionals, Tom O’Saben, told the Associated Press that several states that gave the refunds have determined the payments are not taxable for most. Still, the federal government has yet to make that determination.

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