Millions of taxpayers could pay extra tax bills this tax season 2022 due to how they filed last year.
Taxpayers Could Be Hit With Extra Tax Bills This Tax Season 2023 (PHOTO: The US Sun)
Tax Season 2023
This tax season 2023 allows some states to be exempt from paying taxes on their relief checks, while others will be forced to pay up as it reduced their tax bill last year. Taxpayers from Virginia, Georgia, Massachusetts, and South Carolina, are the states that might be hit with the extra bills.
However, According to The Us Sun, the payments will only apply to residents who chose to itemize deductions in 2022 and received a tax benefit from those deductions. Hence, if a taxpayer took the standard deduction in 2022 or did not receive a tax benefit from state taxes, then the state tax rebates and relief payments are not taxable.
Moreover, f you chose to reduce your taxable income to lower the amount of taxes you owed in 2022, you’ll have to cough up the cash.
Here Is A List Of No Taxes On Additional States
The IRS is still finalizing what states have taxable relief checks for this 2023 tax season, but at least 16 states are exempt from filing the rebates. Several states have mailed out rebates to taxpayers to help them deal with high inflation in the prior years.
People who reside in the following states will not have to report their rebates or relief payments to the IRS this tax filing season:
- California
- Connecticut
- Colorado
- Delaware
- Florida
- Hawaii
- Illinois
- Idaho
- Indiana
- Maine
- New Jersey
- New Mexico
- New York
- Oregon
- Pennsylvania
- Rhode Island
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