If You Have Received Inflation Relief Funds, the IRS Suggests Delaying Your 2022 Tax Return

It’s tax season, and while some Americans want to file their taxes months before the April 18 deadline, the IRS suggests that others wait.

The IRS is considering whether state tax rebates should be regarded as taxable income. These monies were supplied by 19 states to offer taxpayers relief from inflation. Certain states have already decided that inflation relief reimbursements are not taxable. The IRS is currently exploring how to handle them on a national scale.

The agency said in a statement, “There are numerous state programs that disbursed these payments in 2022, and the laws underlying them are complex.”

The issue is also a worry for tax professionals seeking suggestions on how to assist Americans in filing their tax forms appropriately. Some are contemplating processing returns and amending them once a decision has been made.

Colorado, Delaware, Alaska, California, Florida, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, Georgia, Hawaii, Idaho, New Mexico, South Carolina, Oregon, and Virginia are among the affected states.

In the coming days, the IRS plans to determine the subject.