Some taxpayers have been asked to hold off on their 2022 tax returns because the IRS is still determined to scan programs taking place in many states like Georgia and South Carolina. An $800 refund was approved by lawmakers in South Carolina while approving the budget last summer. However, some people received the rebate check quite late the previous year.
Recommendations from the IRS have come to wait before filing taxes. However, if people have already filed, they might have to wait for the amended return. Brandon Smith says the taxpayers to wait until the following questions week and if already filed, he would not amend until he comes to know about the final decision taken by the IRS.
Fortunately, the rebate check of South Carolina is not to be taxed so the tax filing for the people of South Carolina is clear. However, moving to federal taxes, the IRS has decided to impose a tax on them but only a nominal percentage as compared to the overall tariff liability.
Brandon Smith On The Tax Imposed On Stimulus Check
Smith says that even if the stimulus check has been imposed with taxes either for federal or IRS purposes, the impact caused is going to be very small because of the $800. Multiplying any number of rates to $800, the amount is going, to sum up to between 0-40% which also depends upon the amount you make.
Similarities can be drawn with people in more than 22 states. If history throws hints, chances can be that the IRS decides not to tax the stimulus check of the state which is exactly what took place with the stimulus check of COVID-19. Expectations from the IRS are to come up with guidance soon- possibly within the following week.
