The Internal Revenue Service (IRS) has recommended that taxpayers hold off on filing their tax returns for 2022 if they received a special tax refund or payment from their state last year. 19 states offered inflation relief payments or refunds to taxpayers in 2022, but the IRS is uncertain about the taxability of these payments. In a statement, the IRS stated that it is working with state tax officials to provide additional information and clarity for taxpayers.
Residents from states like Oregon, California, and Idaho are being advised to hold off on filing their tax returns until they receive further instruction from the IRS. Oregon issued $600 economic stimulus payments to 236,000 households last summer, which the Oregon Department of Revenue says aren’t taxable income. However, the IRS guidance suggests that the federal agency may not consider the matter straightforwardly.
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According to NBC, the list of states that offered special tax rebates in 2022 includes Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, and Virginia. If you’re unsure if this applies to you, it’s recommended that you consult with a tax professional about your specific situation.
If you received a relief payment or special refund last year, it’s important to note that the IRS is recommending that you hold off on filing your tax return until they provide further instructions. If you already filed your taxes and believe you need to file an amended return, the IRS advises you to wait until further instructions are given.
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