The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. This includes the annual payment of Alaska’s Permanent Fund Dividend and any payments from states provided as compensation to workers. WASHINGTON The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022. Before you start What youll need: Social Security number ZIP Code Your exact refund amount Numbers in your mailing address If your mailing address is 1234 Main Street, the numbers are 1234. Most Americans who are expecting an income tax refund receive it by direct deposit in as little as 2 weeks, although it can take. Both options are available 24 hours a day, 7 days a week, and have the same information as our customer service representatives, without the wait of the phone queue. Use this service to check your refund status. Or download the IRS2Go app to check your refund status. Check your refund status Use our Where’s my Refund tool or call 804.367.2486 for our automated refund system. Other payments that may have been made by states are generally includable in income for federal income tax purposes. You may be able to get a tax refund if you’ve paid too much tax. Payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022.įor a list of the specific payments to which this applies, please see this chart. The IRS has reviewed the types of payments made by various states in 2022 that may fall in these categories and given the complicated fact-specific nature of determining the treatment of these payments for federal tax purposes balanced against the need to provide certainty and clarity for individuals who are now attempting to file their federal income tax returns, the IRS has determined that in the best interest of sound tax administration and given the fact that the pandemic emergency declaration is ending in May, 2023 making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return. Determining whether payments qualify for these exceptions is a complex fact intensive inquiry that depends on a number of considerations. If a payment is made for the promotion of the general welfare or as a disaster relief payment, for example related to the outgoing pandemic, it may be excludable from income for federal tax purposes under the General Welfare Doctrine or as a Qualified Disaster Relief Payment.
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