IRS recommends for taxpayers who received state refunds to 'wait' for guidance before filing
As of Thursday, the IRS has not published additional guidance on its website.
The IRS is advising taxpayers who received a special state refund or payment last year to wait on filing their 2022 taxes until the agency provides additional guidance as it is unsure about the taxability of these state benefits.
The IRS is "working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers" and it expects "to provide additional clarity" this week, according to a statement published by the agency on Feb. 3.
"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," the agency said.
As of Thursday, the IRS has not published additional guidance on its website.
In 2022,19 states offered relief programs or refunds, The Associated Press reported. The IRS is recommending for taxpayers in these states to wait to file so they can avoid having to amend their returns, according to President and CEO of the National Association for the Self-Employed Keith Hall.