Many States Exempt from Reporting State Payments on 2022 Tax Forms
Residents in Select States Spared Reporting State Payments to IRS Issues Guidance in 2022
According to CNBC, the IRS issued guidance to people who got money from their states in 2022. The IRS said that in many states people don’t need to tell them about these payments on their 2022 tax forms. People in California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island are among those who don’t have to report these payments. People in some other states like Georgia, Massachusetts, South Carolina, and Virginia may or may not have to, depending on their past tax filings.
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Potential Delays and Issues for Federal Filers Amid IRS Guidance
The IRS decision was liked by some tax experts. They said it’s not fair to punish people if the rules change late. There might be issues for people in California because the state already gave them forms (1099-MISC) saying the money is taxable. More than 16.5 million people in California got this payment and over 31.6 million people including their families got the benefit. If California doesn’t fix the forms it could cause problems when people in the state file their federal taxes causing delays or making them talk to the IRS to fix things.