The federal government of the United States of America did not provide stimulus checks to the citizens despite their financial crisis. On the other hand, many US states stepped up and offered additional stimulus checks so people could buy food, medicines, and gas and pay their rent and debts.
The IRS had asked Americans to hold off on their 2022 tax filing at the beginning of the tax season because they were still pondering if the stimulus payments were taxable. Ultimately, they announced two lists; one list of states was exempt while the other was not.
Non-Taxable Stimulus Check States
Residents of Alaska received payment from energy relief funds and the agency declared that the $662 amount would not get taxed but the remaining will. The California Tax Refund for Middle Class offered stimulus checks of $200 and $1,050 owing to the worsening inflation when prices of basic commodities were rising. The Cash Back for the people of Colorado worth $750 to $1,050 was provided. The Tax Rebate for Children in Connecticut was $250 for each child. Delaware also offered $300 under their Rebate Relief Program. All these state stimulus checks were non-taxable.
Promising News From The IRS
Florida, Hawaii, Idaho, Indiana, Illinois, New Mexico, New Jersey, Maine, New York, Oregon, Rhode Island, and Pennsylvania were also named under the category of non-taxable states by the IRS. They state that the standard tax administration along with other factors determined the states that will not have to report their stimulus check as a source of income.
Nonetheless, 4 states have been named whose residents will be taxed on their relief payments. These states are Massachusetts, Virginia, South Carolina, and Georgia. People living in these four US states will have to report their stimulus payments while they are filing their 2022 taxes.
