IRS Suggests Delaying Filing 2022 Taxes If You Received Inflation Relief Funds
FILE - The exterior of the Internal Revenue Service (IRS) building in Washington, on March 22, 2013. With an $80 billion infusion of funds through Democrats' flagship climate and health law, and a direct hiring authority that has helped rebuild its ranks, the IRS is beginning to see a "light at the end of the tunnel" of its customer service struggles, says the National Taxpayer Advocate. (AP Photo/Susan Walsh, File)
It's tax season and while some Americans are looking to get a jump on filing months ahead of the April 18 deadline, the IRS is suggesting that some people hold off.
The IRS is weighing whether to consider state tax rebates as taxable income. The funds in question were provided by 19 states to offer taxpayers inflation relief. Some states have already made the decision that the inflation relief refunds are not taxable. The IRS is now considering how to handle them on the federal level.
"There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex," the agency said in a statement.
The issue is also cause for concern for tax pros who are seeking guidance on how to accurately help Americans file their returns. Some are considering processing returns and making amendments once a decision has been made.
The affected states include Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, south Carolina and Virginia.
The IRS said it expects to make a decision on the matter in the coming days.
Nextdoor CEO Nirav Tolia shares how the neighborhood app's redesign aims to inform, connect, and protect communities with smarter features and local insight.
Tim Bohen dives into the 'Trump Trade,' renewed tariffs, waning uncertainty, corporate guidance, and what the Fed’s next move means for traders and markets.
Wall Street icon Peter Tuchman dives into Apex Trader Funding’s partnership with Wall Street Global Trading Academy and what it means for the next-gen trader.
Matthew Frankel, contributing analyst at The Motley Fool, discusses the recent SPAC resurgence, investor interest, and what the data says about their future.
Axios’ Neil Irwin unpacks the political clash as the White House explores legal pathways to dismiss Fed Chair Powell, threatening central bank independence.
Shark attack survivor Paul de Gelder joins us to talk Navy diving, bull sharks, and his wild return in Air Jaws and more during Discovery’s Shark Week!
