The people of California have been waiting for a very long time to know their tax fate made by IRS regarding the stimulus check received from them. The IRS recently announced that several of the US states had offered stimulus payments to their residents and this payment might not be taxed by them.
Under the special state refunds or payments given to millions of Americans all over the nation during 2022, Californians also received stimulus checks and are eager to know if they need to report it as a source of income.
California Stimulus Check Payment Taxation
The residents of California had previously received MCTRs (Tax Refunds for the Middle Class) that were meant to support people during the time of financial crises. The state government shelled out its surplus funds worth a whopping $9 billion to provide stimulus checks to 31 million beneficiaries. This was reported by the Tax Board Franchise of California.
Some weeks back, the IRS informed the taxpayers to hold off on their tax filing for the year 2022 since they were determining the standard taxation status in relation to these special stimulus payments. Eventually, IRS stated that the California MCTRs will not be taxed. This is indeed great news for Californians.
IRS Gives Good News
The agency has determined that the people of California have time before their next tax filing. On the other hand, this announcement from IRS arrived later in the California Golden State since they have already started giving out the form 1099-MISC to their residents.
This form is used by people whose monthly income is over $600 and who must use it for tax filing. Nonetheless, this good news from IRS is a huge tax relief for Californians. The people will have to file by the 18th of April which is the Tax Day for 2023.