The central US government stopped paying stimulus checks to the citizens despite the rising inflation and economic instability that led to high prices. Americans were having trouble purchasing even basic items like food, medicines, and gas or paying their rent and debts. In such a difficult financial crisis, many states all over the United States of America came forward and provided stimulus checks.
Now the 2023 tax season has already arrived and Americans are not certain about the tax filing or refund amount that is desperately needed.
Details Of Stimulus Check Taxation
The federal government last paid stimulus checks in March 2021 while the missing checks were last claimed on 15th November 2022. The IRS has informed the citizens that the stimulus check offered by the federal government will not be taxed. Nonetheless, filers must report it while filing their tax returns for 2022 for the reason that this will ensure proper payment and transparency.
On the other hand, the agency has mentioned that there are a few states who provided stimulus checks to their eligible residents that might be taxed. They also categorized several state stimulus payments that will be exempted from taxation because they fall under disaster relief and general welfare payments.
Clarification On Stimulus Payment
Americans can be certain of the fact that whether they receive relief payments from their respective states or from the federal government, their money will be non-taxable. However, they must remember to report it as their source of income.
The IRS has also stated that the eligible people who missed out on their relief payment must immediately inform the agency. The citizens seem elated to know that their stimulus money has been exempted from taxation for the year 2023.
