If you received a state tax refund last year, here is what you need to know.
The IRS issued the guidance Friday due to the agency’s uncertainty about the taxability of the payments.“We are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers,” the IRS said in its statement.
For residents from states such as California and Illinois, the agency is recommending that they hold off on filing their tax returns until they receive further instruction from the IRS.I GOT A TAX REFUND FROM MY STATE. WHAT DOES THE IRS STATEMENT MEAN FOR ME? If you got a tax refund from your state in 2022, the IRS is recommending you hold off on filing your tax return until the agency gives further instructions. Certain states that provided these refunds have determined that these payments are not taxable for most people. What needs to be determined is if these refunds are taxable on the federal level, said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals.
In some states, people would get taxed if they received a tax refund in 2022 only if they itemize their deductions, said Keith Hall, president and CEO of the National Association for the Self-Employed. An example of a state that is taking this route is Virginia, which has stated that taxpayers that filed a standard deduction will not be taxed for their tax rebate. However, not all states have issued guidance on tax rebates.
“I think the IRS is trying to help people save another filing, if they had to do an amended return,” he said.The IRS is recommending that you don’t file an amended return yet. If you believe you need to file an amended return, the IRS advises you to wait until further instructions are given.Special tax refunds were offered by 19 states in 2022.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
IRS urges special refund recipients to delay filing taxesThe Internal Revenue Service is recommending that taxpayers hold off on filing their tax returns for 2022 if they received a special tax refund or payment from their state last year.
Baca lebih lajut »
State of the Union 2023: New Illinois congresswoman tapped to give Working Families Party responseU.S. Rep. Delia Ramirez has been tapped by the progressive Working Families Party to deliver a response to President Biden's State of Union address.
Baca lebih lajut »
Illinois Republican Rep. Mary Miller boycotting Biden's 2023 State of the Union addressWhile most of Illinois' representatives will be in attendance at Tuesday night's State of the Union, with guests in tow, one is boycotting the speech.
Baca lebih lajut »
Illinois permanent child tax credit: Here's who would qualify under proposed billState lawmakers are fighting to create a permanent child tax credit in Illinois.
Baca lebih lajut »
IRS asks millions of Americans to wait before filing taxesThe Internal Revenue Service is asking millions of Americans to wait to file their tax returns as it works to clear up questions about special tax refunds or payments made by states in 2022.
Baca lebih lajut »
Is Social Security income taxed by the IRS? Ask the lawyerThe IRS may tax your Social Security benefits, at least in part, but California does not.
Baca lebih lajut »