News Block

The Internal Revenue Service provided details on February 10, 2023, clarifying the federal tax status involving special payments made by 21 states in 2022. 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 means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island. Alaska is in this group as well. To assist taxpayers who have received these payments file their returns in a timely fashion, the IRS is providing the additional information below. For more information, visit https://www.irs.gov/newsroom/irs-issues-guidance-on-state-tax-payments-to-help-taxpayers.