Millions received 1099 tax forms saying they must report the 'Middle Class Tax Refunds' as income -- however, the IRS ruled Friday you won't have to pay taxes on that income.
California taxpayers got some great news today from the IRS: the federal government will not tax those Middle Class Tax Refunds after all.California taxpayers got some great news Friday from the Internal Revenue Service, the federal government will not tax those Middle Class Tax Refunds after all.
Californians have been waiting for weeks to find out if the IRS will tax their inflation relief payments. Today, the IRS said no - it qualifies as "relief."The state issued more than 16 million payments to Californians ranging from $200 for singles up to $1,050 for families. Millions received 1099 tax forms saying they must report the payments as income -- however, the IRS ruled today you won't have to pay taxes on that income.
"The IRS just issued just a few minutes ago a directive that taxpayers in California will not need to report the payments on their 2022 tax returns," said Norman Golden, IRS enrolled agent. "My clients and taxpayers in California will be very happy the IRS is not going to tax them on these payments."The IRS indicated the payments qualified as either disaster relief or for the good of general welfare.
Note: Enrolled agent Golden says he will still advise clients to report the 1099 on their tax forms, but back out the income using the "general welfare" exclusion. This is to prevent the IRS from coming back to say you didn't report a 1099, since those forms are reported to the IRS.7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
IRS says it will not tax California’s Middle Class Tax RefundThe agency is using a welfare and disaster provision to skip taxation on these one-time payments
Consulte Mais informação »
IRS: Wait to file taxes if you got California's Middle Class Tax RefundThe IRS is telling some people to wait to file their taxes this year. It's because of the special tax refunds California and over 15 other states sent out in 2022.
Consulte Mais informação »
Hackers took their Middle Class Tax Refunds and now victims are getting a tax billThe state gave out these Middle Class Tax Refunds to offset high inflation and gas prices. Now, some say they would've been better off without the payments in the first place.
Consulte Mais informação »
Investigate the LDS Church for tax fraud, IRS whistleblower urges U.S. SenateA whistleblower, David Nielsen, has sent further allegations of fraud by the LDS Church's investment arm, Ensign Peak Advisors, to the U.S. Senate Finance Committe, urging the committee to investigate.
Consulte Mais informação »
Will the IRS give me a tax break on my Super Bowl gambling losses?Super Bowl betting could break records as more states allow legal sports wagering.
Consulte Mais informação »