If you are extremely eager to file for your taxes in order to receive a tax refund on the stimulus check payment, an alert from the 3rd of February should ideally stop you in your tracks. The agency has warned that if you have received the funds in 2022, you should ideally want to delay submitting the tax forms until there is some form of clarity regarding whether the money will be taxed or not. As it turns out and has been well-documented, the federal government didn’t really send out any stimulus check payment the previous year.
Wait Before You File For Your Stimulus Check Payment
However, that slack was picked up by a number of states. So if you did receive payment the previous year, there is a chance that it did come from your own state. When the federal government issued the payments, the money had been considered as an advance on a tax credit. This brought forth no questions about whether one should be owing taxes on it or not. Since the stimulus payment was just a tax credit, it was not income- and therefore not taxable.
But things get quite complicated when it comes to the stimulus check payments that were issued by the states. In fact, the IRS has not yet been entirely clear on how the funds from the states will be treated for purposes of taxation. Although, the recent news release does make it clear that the agency has been trying to bring out open questions now- which would soon be resolved. The IRS is definitely aware of questions that involve special tax payments or refunds that were made by the states in 2022. There are a variety of state programs that brought about these payments in 2022- and the rules that surround them are quite complex.
