These 17 States Are Exempting Stimulus Payments From Taxes

The IRS The federal government will not tax payments for general welfare or disaster relief made by states, such as California’s Middle Class Tax Rebate and Colorado’s Cashback program. In 2022, 17 states offered rebates to residents in order to assist them with ongoing needs. coronavirus pandemic.

“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,” The service stated in a Press release.

Six states, including New York and Illinois, issued tax rebates. In some cases, these refunds can be reported to the IRS and are taxable.

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These payments are exempted Federal and state taxes:

• Alaska Energy Relief Payment. The $3,284 federally taxed Permanent Fund Dividend for the state included a $662 nontaxable Energy relief payment.
• California Refunds for Taxes of the Middle Class. Californians were given $200 to $1,050 in aid of rising gas prices and other necessities.
• Colorado Colorado Cash Back. This refund was $1,500 to joint filers and $750 for the individual.
• Connecticut Child Tax Rebate. Connecticutans who meet income thresholds were eligible for $250 per child up to three years.
• Delaware Program to Repay the Damage. Delaware paid $300 per resident to residents in order for them to cope with the higher grocery and gas prices after the COVID pandemic.

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Sarasota, Florida, skyline (iStock / iStock)

• Florida Help for families in need during a pandemic. P-TANF paid $450 per Child to the state’s poorest families and families that care for foster children.
• Hawaii Act 115 Refund. Based on 2021 federal income, Hawaiians could receive $100 or $300 each.
• Idaho 2022 Tax Rebates. Two rebates were available in Idaho. The Special Session Rebate paid 10% of the 2020 state taxes or $300 (whichever is larger). Couples filing jointly as married received $600. The 2022 Rebate paid the greater of 12% state tax or $75 per taxpayer or dependent.
• Illinois has issued two rebates. Individual Tax Rebate And the Property Tax Rebate. According to the IRS, one of these is a refund of taxes that may be reportable. The second is a nontaxable payment for disaster relief. FOX Business asked for clarification but the IRS did not respond. Talk to your tax advisor.

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• Indiana Automatic Taxpayer Refunds #1 & #2. Due to excess tax revenue, Indiana issued two refunds in Indiana totalling $325 ($650 for filing jointly).
• Maine Pandemic Relief Funds. Maine sends $850 relief checks to 858,000 Mainers despite high costs.
• New Jersey Director Assistance Program for ITIN Holders. 2021 filers will be awarded $500 per person who files a tax return that includes an Individual Taxpayer ID Number. Income limits may apply. Individuals who have a need for an individual tax payer identification number (ITIN) are eligible to receive one.
• New Mexico Multiple rebate and relief programs. Eligible taxpayers were eligible to receive up to $750 for a single filing and $1,500 for a married filing jointly if they are head of the household or surviving spouses. This was to help them with rising household, grocery, and gas costs. Non-filers were eligible for rebates up to $500 and $1,000

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People exercise in view at midtown Manhattan at Hunter’s Point Park South (May 14, 2020), in Queens, New York. (AP Photo / Frank Franklin II).

• New York Two rebates issuedThe Supplemental Child Credit, and the Supplemental Earned income Tax Credit. One is a tax refund and can be reported, while the other is non-taxable disaster relief payments. FOX Business asked for clarification but the IRS didn’t respond. Consult your tax adviser.
• Oregon One-time assistance payments. Oregon paid $600 for eligible households that received the Oregon Earned income Tax Credit (EITC), on their 2020 tax filing, and who lived in Oregon during the six months prior to 2020.
• Pennsylvania One-Time Bonus Rebates. For Pennsylvanians over 65 and disabled, a bonus rebate up to $1657.50 could be available.
• Rhode Island 2022 Child tax rebates. This rebate was created to help working families deal with inflation. It is $250 per eligible child.

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Four other states — Georgia, Massachusetts, South Carolina and Virginia — issued income tax rebates. These may be subject to tax in certain situations, according to the IRS.