The IRS has recommended that some taxpayers should be holding off on filing their tax returns for 2022, as it will be taking a closer look at the stimulus check programs in some of the states like Georgia, and South Carolina. In the state of South Carolina, the state legislators have already approved a tax refund of around $800 when they had previously approved the budget of the state the previous summer.
The rebate check did go out to quite a few people the previous year. The IRS has also recommended that these people should be waiting to file their taxes, but for those who have already filed for the payments, the IRS has already filed for an amended return.
The IRS Could Tax The Stimulus check payments
Brandon Smith, a young partner at Smith and Shin CPA, went on to state that if one hasn’t already filed for their tax returns and seems to be concerned, one could wait until the next week. But if they have already filed for their stimulus check payment, there is no reason to amend it- rather, they could wait for any further information from the IRS. The good news that is on the horizon is the rebate checks issued by the state of South Carolina will not be taxed by the state- so the state filing could be in the clear. And when it comes to federal taxes, the percentage should be minuscule when compared to the overall tax liability.
Even if the stimulus check payments were taxable, for federal purposes or the IRS, it will have a very small impact overall- simply because the payment maxes out at around $800. Therefore, the tax could be as low as 0, or even 40%- entirely dependent on how much money an individual would make. Interestingly, people from close to 22 states have been working on this issue for the last few weeks, and as far as the IRS is concerned they just might not tax the state rebate payments.
