Latest News, Local News, International News, US Politics, Economy

Inflation relief checks: IRS won’t require these states to report their payments; Here’s why!

The IRS has been attempting to ascertain this week if the cash given to citizens of 21 states counts, including inflation relief checks, is subject to federal income tax.

According to the IRS’s Friday night announcement, the answer is unambiguous no for 16 states. There are some nuances for the remaining five states, which will probably cause some concern for the taxpayers who need to understand what the new tax laws entail for them.

IRS Tax Refunds

Last Monday, the IRS encouraged those with tax concerns over their state payments to postpone filing tax returns until it resolved the matter. By then, the tax authorities had already processed about 8 million refunds and nearly 19 million tax returns.

According to a list released by the IRS on Friday, residents of California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island are exempt from reporting inflation-related payments on their 2022 returns.

Read more: Who’s eligible for stimulus checks during tax season?

States’ Inflation Relief Checks

Finance-IRS-Inflation relief checks-Money-US News
The IRS has been attempting to ascertain this week if the cash given to citizens of 21 states counts, including inflation relief checks, is subject to federal income tax.

Massachusetts

According to the commonwealth’s announcement, qualified individuals would get a refund equal to 14.0312% of their personal income tax debt as calculated from their 2021 filings.

If tax revenue collections surpass the yearly tax revenue cap, the state of Massachusetts is required by law to return a portion of the surplus tax money to taxpayers.

The state of Massachusetts reported that it had collected roughly $3 billion in extra taxes, which had triggered the statute requiring the refund.

Michigan

Recently, Democratic lawmakers and Governor Gretchen Whitmer unveiled a plan that would send $180 inflation relief checks to Michigan taxpayers who are filing for the 2022 tax year.

If the proposal is passed, a couple filing jointly would receive the same amount of money while single filers would receive a check for $180. The idea states that married taxpayers who file separately would still only receive $90 apiece.

New Jersey

Residents can apply for property tax assistance under the state’s ANCHOR benefit program through February 28.

Affordable New Jersey Communities for Homeowners and Renters, or ANCHOR, is available to an estimated 2 million households in the Garden State.

Colorado

The Taxpayer’s Bill of Rights (TABOR), a state statute that mandates the state to repay excess tax money, benefits residents.

The state mailed rewards totaling $750 to solo 2021 tax return filers and $1,500 to joint filers in September. April 18 is the cutoff date for submitting 2022 tax forms in order to be qualified for payouts later this year.

Read more: Social Security update: Recipients will get two direct payment checks on March. Here’s why!

Leave A Reply

Your email address will not be published.