The IRS on Friday issued federal tax guidance for millions of Americans who received state rebates or payments in 2022.
The announcement comes about a week after the agency asked taxpayers to refrain from filing when determining whether the funds are taxable on their federal returns.
“The IRS has determined that in the interest of good tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns,” the agency said in a statement.
The agency said taxpayers in California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island do not need to report the payments. federal tax returns. Some Alaska taxpayers may also avoid federal withholding on certain payments.
Taxpayers in Georgia, Massachusetts, South Carolina and Virginia may skip federal tax returns for some payments. But eligibility may depend on factors from previous tax filings.
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