According to the Internal Revenue Service, early filers who received stimulus checks the prior year should consider updating their tax taxes right away. The IRS finds that affects a small number of the millions of residents in 21 states who received stimulus money last year.
Many of those state contributions are not taxable, as the IRS determined earlier this year, but many people filed their tax returns before the IRS made that determination. As a result, some of the early taxpayers who declared the dividends as taxable income may be awarded a refund.
Tax Reporting Requirements for State Payments Vary
The states where residents are not required to report these state payments on this year’s payments are California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island.
For residents of Alaska, the only state payment they do not need to report on their 2022 taxes is the supplemental Energy Relief Payment they received.
Under some conditions, residents of Georgia, Massachusetts, South Carolina, and Virginia are also exempt from including special state 2022 payments as income.
These circumstances include whether the money residents received was a refund of state taxes paid, as well as if the recipient claimed the standard deduction for the tax year 2022 or itemized their deductions for the tax year 2022 but did not get a tax advantage.
Read more: IRS: Differences between child tax credit and credit for other dependents
Additional Sum into Account Does Not Apply to you
If you did not get a special state payout the previous year, the IRS warning about taking an additional sum into account does not apply to you.
If you filed your original tax return electronically and need to make changes, you can file your revised tax return electronically.
However, if you file a paper return, you will not be able to receive an immediate deposit or a refund.
According to the IRS, the quickest way to receive a payment is to electronically file original and updated forms.
Keep in mind that the IRS currently takes more than 20 weeks to refund the cash from an amended return.
IRS, this is true whether the revised benefits were submitted electronically or on paper.
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