The IRS Says Don't File Yet!

On Feb. 3rd, the IRS announced that because of stimulus payments in 2022, many filers could be in a state of limbo and their returns may need to be amended. They're even suggesting that you don't file JUST YET. Are you in one of the 22 states that are affected? Check out this video where Joe breaks down what's going on and how it could impact your return.

IRS Statement — Taxability of State Payments

The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers. There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. We expect to provide additional clarity for as many states and taxpayers as possible next week.

For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional. For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS. We also do not recommend amending a previously filed 2022 return.

AT LEAST SOME TAXPAYERS RECEIVED REBATE CHECKS IN THESE STATES. THE IRS HAS YET TO SAY WHAT THAT DOES TO THEIR FEDERAL TAX LIABILITY:

• Alaska

• Arkansas

• California

• Colorado

• Connecticut

• Delaware

• Florida

• Georgia

• Hawaii

• Idaho

• Illinois

• Indiana

• Maine

• Massachusetts

• Minnesota

• New Jersey

• New Mexico

• New York

• Oregon

• Rhode Island

• South Carolina

• Virginia