The US central government had stopped offering further stimulus checks long ago despite the financial struggles of the citizens. During this time, many states all over the US came forward to offer relief aid in the form of tax rebates and stimulus checks. However, all those relief payments had been offered in 2022 and most of them had already been distributed.
Soon the people of the United States will have to file their taxes for 2022. Now they are all confused if they should report these stimulus check payments as their source of income owing to the reason that it might be taxed.
IRS Announcement For 2022 Tax
The IRS had previously asked the people of the US to hold off on their 2022 tax filing. This was because they were still pondering over whether the stimulus check was being taxed or not. After many considerations, the agency has finally announced the good news to the citizens.
The IRS stated that people in most US states do not need to report their stimulus payments since they will not be getting taxed. In addition, they also mentioned that supplemental relief payments from the special energy funds in Alaska would be provided to the residents in 2022. Only $662 of the entire relief payment will be taxed while the remaining will not get taxed.
Taxable And Non-Taxable States
The IRS listed the following states that will be taxed: Massachusetts, Georgia, Virginia, and South Carolina. The residents of these states will not receive any tax benefits.
On the other hand, the IRS has promised tax benefits to the residents of the special states. Citizens who are uncertain can see the details on the official website of the agency before filing their taxes for 2022.
