Several States Do Not Have To Include Relief Checks On Taxes

There was previous confusion that made taxation situations so difficult that it required the IRS to urge taxpayers to delay filing their returns. The delay was placed until the agency could sort out how to work with local officials to decide how to guide the process.

The IRS announced that most relief checks sent to residents in several states will not be taxed at the federal level.

There was previous confusion that made taxation situations so difficult that it required the IRS to urge taxpayers to delay filing their returns. The delay was placed until the agency could sort out how to work with local officials to decide how to guide the process.

21 states were issued special payments and 2022’s state-level relief payments came in many different forms. This made it harder for the IRS to issue a set guiding process and forced them to call for a pause after tax season began.

Now, several states will not require taxpayers to include state payments on their federal returns including South Carolina. However, a taxfiler does not have to claim the relief only if the payment was a refund of state taxes and the individual did not already receive a tax benefit in the year the taxes were deducted.