The Internal Revenue Service (IRS) advised millions of taxpayers to wait for their official guidance this week before they will file their taxes.
IRS to Release Official Guidance this Week
The Internal Revenue Service (IRS) announced last week that they will issue official guidance this week over the taxable income after the taxpayers got confused about whether the state stimulus checks are taxable or not.
According to a report published in CBS News, California and 18 other states will be affected once the official guidance will be released this week. It can be remembered that these states released state stimulus checks in 2022.
Hence, the agency is asking millions of taxpayers to hold off on filing their taxes. The IRS is still seeking to clarify whether tax rebates, state stimulus checks, and special refunds are considered taxable income or not.
IRS and Taxpayers Released Statements
An officer from the Internal Revenue Service said, “There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex. For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional.”
On the other hand, one of the taxpayers wrote through a social media account, “So I tried to sit down this morning for a fun game of Do Your Taxes, but turns out the IRS hasn’t decided if California’s Middle Class Tax Relief payments are taxable or not…,” according to a report published in DENVER7.
Furthermore, it is estimated that around 16 million Californians received the middle class tax refund worth $350 for every eligible resident in the state. Other states also released tax rebates last year and are waiting for the decision of the IRS this week.