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IRS Considers Taxes on State Payments

 Tax flagThe Internal Revenue Service is working with states to clarify of questions involving special tax refunds or payments made by states in 2022. It hopes to provide clarify for as many states as possible this week.

The IRS recommended taxpayers wait for additional guidance.

“We are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers, the IRS said in a prepared statement.

The statement said a variety of state programs distributed payments in 2022 and there are complex rules surrounding them. The agency does not recommend amending a previously filed 2022 return.

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