Taxpayers who filed their taxes early this year might consider filing for an amended tax return if they reported certain refunds, they received last year as taxable. IRS issued a clarification in February with regards to the tax status for special payments that were issued to taxpayers in some states last year in which the agency clarifies that taxpayers did not have to report these payments on their tax returns.
Early Tax Filers Who Reported Tax Refunds as Taxable Last Year Should File for An Amended Tax Return This Year, IRS Advises (Photo: NewsNation)
Amended Tax Returns
If you reported a tax refund as taxable last year, IRS advised you to file for an amended tax this year for possible refunds.
There are states that are not required to report this year’s tax return, and these are California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island.
For all the residents of Alaska, you are only exempted to report the supplemental Energy Relief Payment you received.
Georgia, Massachusetts, South Carolina, and Virginia residents are also not required to include special state 2022 tax refunds as income under certain circumstances. This means that if the payment residents received a refund of state taxes paid, including the recipient either claimed the standard deduction for the tax year 2022 or itemized their tax year 2022 deductions but did not receive a tax benefit, then you are not required to pay for a special tax refund as income tax.
If you think you met all the requirements stated above and filed prior to Feb 10, then the IRS advised you to file for an amended tax refund.
A taxpayer can also choose to send in a paper amendment, though they will not receive their refund through direct deposit and instead receive a paper check.
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