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.
The return of ‘meme stocks’ don’t mean it’s time to panic about the stock market. If you want something to worry about… look no further than inflation.
Andela is revolutionizing global work for a sustainable future. Their impact includes diverse skills, income growth, & successful hiring in untapped locations.
With Gamestop and other meme stocks back on the rise, it brings to mind some similarities between 2021 and 2024 economically… and that’s not necessarily good.
After 10 years as a men's wear brand, the popular athleisure brand recently launched its women's line, redefining standards and championing inclusivity.
According to the 2024 Acorns Money Matters Report, nearly a quarter of Americans are worried they could become homeless – and don’t know how easy it is to save.
