Hey ,
The Internal Revenue Service (IRS) has provided details clarifying the federal tax status of special payments made by some states in 2022.
These special tax payments are relief programs such as COVID relief programs and disaster relief
payments at the State level.
What did
the IRS say?
The IRS determined that many taxpayers in several states
will not need to report these payments on their 2022 tax returns.
This
includes taxpayers in:
- California, Colorado, Connecticut
- Delaware, Florida, Hawaii, Idaho
- Illinois, Indiana, Maine, New Jersey
- New Mexico, New York, Oregon
- Pennsylvania, and Rhode Island.
In addition, taxpayers in Georgia, Massachusetts, South Carolina, and Virginia do not have
to report these payments if they meet certain requirements.
The requirements
include that the payment is a refund of state taxes paid, and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit.
So, some taxpayers may get confused about these details and more. Let me prepare your tax returns to protect you from such.
If you have any questions or concerns, please don't hesitate to contact my office at +1 202-618-1295.
I would be happy to discuss your options and help you make the best decision for your business.
Thank you for considering me for your tax return filing needs. I look forward to working with you.
