Stimulus Check Update: Amount To Be Extended For Residents

stimulus checks
Stimulus Checks

The central government of the United States of America had already stopped providing any further stimulus checks to the citizens. The Americans have been facing the worst brunt of inflation and the post-COVID financial crisis. As a result, several of the US states decided to extend relief aid to their residents in the form of tax refunds as well as stimulus checks. 

Despite this support, the government had forgotten to decide whether these stimulus check relief payments should be taxed or not. Now that the season of tax is here, people want to know if they must report these stimulus payments while 2022 tax filing

IRS Decision Confirmed 

The IRS had asked the US citizens to hold off on the process of filing their 2022 taxes since they were still considering the taxation system. Finally, after consideration and discussion, the agency has confirmed that they will not tax the stimulus check of the residents of these 16 states: Indiana, Illinois, Maine, Idaho, New Jersey, Hawaii, New Mexico, Florida, New York, Delaware, Oregon, Delaware, Pennsylvania, Connecticut, Rhode Island, Colorado, and California. 

The IRS has also informed that the annual payment of dividends offered by the state government of Alaska under the Permanent Fund program will be liable to half taxation. So the residents will only have to pay tax for $662 while the remaining amount will remain untaxed. The people of the states are extremely relieved on receiving this news from IRS. 

Taxation For 2022 complications 

Although the agency has given good news to many people all over the US, others are not thrilled at all. This is mainly due to the reason that the IRS listed the states whose people are not exempted from the taxation system. These states are South Carolina, Georgia, Virginia, and Massachusetts. These state residents will have to report their stimulus payment so that it can be considered taxable income.