On Thursday, Republican Rep. Kevin Kiley issued a letter to Internal Revenue Service, requesting to clarify That California inflation relief payments if it’s taxable at the federal level.
Kevin Kiley Urges IRS To Clarify The California Inflation Relief Taxes (PHOTO: The Sacramento Bee)
IRS To Clarify California Inflation Relief Taxes
Republican Rep. Kevin Kiley send an intent letter to the Internal Revenue Service Thursday, urging them to review whether the California inflation relief payments are taxable at the federal level. This rise after several questions to his office from constituents seeking help and attempts to reach the IRS and tips on what taxpayers should do from a California-certified public accountant.
Several people are asking whether they should claim the Middle-Class Tax Refund as income on their federal tax returns. They are not taxed at the state level. Kiley wrote to IRS stating “Many of the 16 million residents of California who obtained the refund are unable to file a 2022 tax return because they do not have clear guidance as to whether to include this payment,”
IRS Informs Everyone To Wait For Further Information
After several attempts, IRS finally responds and tells everyone to wait for guidance or consult with a reputable tax professional. For taxpayers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS, according to the email from Raphael Tulino, an IRS spokesman. Lastly, the IRS is working with state tax officials to provide information for taxpayers soon.
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