That's technically what the California payments were as well, but they go to residents, not just taxpayers.
It sounds like Virginia's payments were made to property owners who had paid real estate tax, so that's different.
IRS requests not to file now
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That's technically what the California payments were as well, but they go to residents, not just taxpayers.
It sounds like Virginia's payments were made to property owners who had paid real estate tax, so that's different.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Idaho seems to be sending out two 1099-Gs: one for regular state tax refunds paid in 2022 based on the 2021 tax year, and a second one for the two special tax refunds paid in 2022 based on the 2020 tax year. The latter do not appear to be going out to all taxpayers (yet).
Based on the language of the laws, I'm expecting the IRS to say that the normal rules apply - if you itemized in the base year, you must report on your federal return the amount shown on the 1099-G. If the IRS says something different, I will be very curious to read what they say and their logic for their position.
I think Idaho called them special tax rebates.
Based on the language of the laws, I'm expecting the IRS to say that the normal rules apply - if you itemized in the base year, you must report on your federal return the amount shown on the 1099-G. If the IRS says something different, I will be very curious to read what they say and their logic for their position.
I think Idaho called them special tax rebates.
I learned about this the day after I filed my return. Oh well.
Maine called theirs a "relief check" and went on to say "This money comes from the record surplus that State government recorded this year." They didn't send me a 1099 for this, although I did get a 1099-G for my state tax refund.
I don't expect it'll be a huge adjustment if I do have to file an amended return. Still a bit of a hassle though.
Maine called theirs a "relief check" and went on to say "This money comes from the record surplus that State government recorded this year." They didn't send me a 1099 for this, although I did get a 1099-G for my state tax refund.
I don't expect it'll be a huge adjustment if I do have to file an amended return. Still a bit of a hassle though.
SecondCor521
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Someone explained to me that Congress included language in their Covid relief bills that the states had to spend that money on Covid relief and not give out tax rebates or refunds with those federal relief dollars. I don't know if this is true, but it seems plausible to me. I remember comments at the time about this when the relieve bills were being drafted.
Of course state budgets are huge with lots of different inflows and outflows and money is fungible, so it might be difficult to say with any certainty that that's what states did, especially if they also spent money on Covid relief in addition to the tax rebates.
I think the IRS is trying to find a way to comply with the Congressional Covid relief language without creating major downsides.
I agree with @cathy63's comments that the IRS is late in issuing guidance. This should not have been a surprise to anyone. But I do know the IRS has a lot on their plates right now with everything assigned to them.
Apparently Georgia is also among the states effected and has identified the money as a State Tax Credit due to the $2.2B surplus collected in 2021. I saw a notification this week that tax status still pending from the IRS so don't file yet.
I haven't paid state taxes in several years due to the generous tax laws for seniors in Georgia despite my $77K total income this year so was not eligible for a credit. Actually my Georgia return listed my taxable income this year as -$9400 which is equal to my combined standard deduction and personal exemption. I'm good with that as paying no taxes trumps a tax credit every time.
DGF also did not qualify for the same reason.
I haven't paid state taxes in several years due to the generous tax laws for seniors in Georgia despite my $77K total income this year so was not eligible for a credit. Actually my Georgia return listed my taxable income this year as -$9400 which is equal to my combined standard deduction and personal exemption. I'm good with that as paying no taxes trumps a tax credit every time.
DGF also did not qualify for the same reason.
walkinwood
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Add Colorado to this list. The IRS is expected to decide by next week if the refund we received last year from the state is taxable.
Colorado has a law called Tabor which restricts how much money the state/city governments can retain. It is based on population and inflation. Excess revenue must be returned. The state has been doing this for years, but since so many states distributed funds (through a variety of programs) last year, I think the IRS wants to weigh in.
Colorado has a law called Tabor which restricts how much money the state/city governments can retain. It is based on population and inflation. Excess revenue must be returned. The state has been doing this for years, but since so many states distributed funds (through a variety of programs) last year, I think the IRS wants to weigh in.
No surprise to any of us, but all these states with the different refunds/stimulus checks are all similar but different at the same time. All depends on the exact terminology of the program.
These states could have easily avoided all this from the start if they had drafted these programs correctly from the start. My bet unfortunately is that it's Federally taxable. Feel sorry for the people that have already filed their taxes and now have to figure out how to amend their return.
These states could have easily avoided all this from the start if they had drafted these programs correctly from the start. My bet unfortunately is that it's Federally taxable. Feel sorry for the people that have already filed their taxes and now have to figure out how to amend their return.
Here's the formal response from the IRS: https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
footnote for Alaska: Only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund
Dividend.
footnote for Alaska: Only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund
Dividend.
Apparently not just for CA, but for 21 states which issued these payments:
https://www.newscentermaine.com/art...ments/97-e926dbfe-11f2-4e93-8c5d-a90cffecb41e
https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers
There's more detail on the four states (GA, MA, SC, VA) which identified it as a tax refund in the IRS link, above.
Now I'm glad I got my return in early. Got my refund on the fifth day, even counting the weekend!
Accidental Retiree
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This is good news. Now I don’t have to worry about paying taxes on the $700 we never received—no matter what the 1099 says!
Freedom56
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Not just California but...
"Most payments fall into the category of general welfare and disaster relief payments, the IRS concluded, for purposes of filing 2022 tax returns. People in the following states don’t need to report these state payments on their 2022 tax returns: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island, the IRS said. Alaska’s Energy Relief Payment falls into this category and won’t be taxable for federal purposes, the IRS said."
https://www.wsj.com/articles/after-...g-irs-says-go-ahead-fa3ed7af?mod=hp_lead_pos4
"Most payments fall into the category of general welfare and disaster relief payments, the IRS concluded, for purposes of filing 2022 tax returns. People in the following states don’t need to report these state payments on their 2022 tax returns: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island, the IRS said. Alaska’s Energy Relief Payment falls into this category and won’t be taxable for federal purposes, the IRS said."
https://www.wsj.com/articles/after-...g-irs-says-go-ahead-fa3ed7af?mod=hp_lead_pos4
Golden sunsets
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My SC payment appeared in my bank account, from the state of SC.
Thank you for the link. My SC payment/refundisnot taxable per that guidance ��
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