It has been well-documented that Americans have been suffering quietly under the pain of higher prices at the grocery store, and in certain other areas of their lives. But it must also be mentioned that their pain might get exacerbated even further- in the form of taxes that they owe to the IRS on their previous stimulus check payments.
According to The Ascent, some of the individuals who received prior payments in 2022 may be required to report them when they will file their tax returns, which is also dependent on if their state did classify the funds as a suitable form of income or not. If the state stimulus funds were further reported as income to the IRS, then the recipients may be required to report them presently.
California Could Be Receiving Tax Penalty On Account of Stimulus Check Payments
This will probably affect the citizens of California the most- for they had received their stimulus check payments which had a valuation of over $600, with the California Franchise Tax Board stating that it would report the middle-class refunds that the state had been sending when they were previously valued.
Other states, interestingly, did not follow through with this, and it implies that the residents of these states will not find themselves forced to claim the payments as any acceptable form of payment. One of the best ways for those who received a payment in 2022 to know if they are going to be required to claim is if they received a MISC form in the mail from the IRS.
As it stands, despite there being a possibility of some form of tax penalty that could be implemented due to the stimulus check payments, some of the citizens in the state could still be receiving additional stimulus check payments. According to the Franchise Tax Board, a pay schedule would be released which would showcase the payments that are to be sent between the 30th of January and the 14th of February.