The Internal Revenue Service (IRS) has advised taxpayers to file an amended federal income tax return if they have already filed their federal taxes and reported their California inflation relief as income.
IRS released new guidance on California Middle Class Tax Refund. (Photo: SACBEE)
IRS on California Middle Class Tax Refund
The announcement came on Tuesday after the IRS declared that the 2022 California Middle Class Tax Refund was not subject to federal tax on February 10. However, many individuals had already filed their federal returns for 2022 and did pay tax on the refunds.
The IRS said that anyone who already paid tax on a state refund should check their tax return to see if they need to file an amended return. Those who need to file an amended return can do so electronically and choose direct deposit for any refunds they may receive. This is a convenient and secure way to receive refunds faster and cut out the mail time, according to a report published in YAHOO NEWS.
If taxpayers prefer to file a paper version of Form 1040-X, Amended U.S. Individual Income Tax Return, they can receive a paper check. The form should be mailed to the Department of the Treasury, Internal Revenue Service, Austin, TX 73301-0052. However, if they file a paper return, direct deposit is not available.
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How to Check the Status of Amended Return?
In a published article in The Tribune, to check the status of the amended return, taxpayers can go to “Where’s My Amended Return?” The announcement from the IRS put an end to the confusion surrounding the refund.
The IRS did not give guidance on whether the refund should be claimed as income until the tax season was already underway, causing questions from filers and CPAs across the state.
Community members reached out to The Sacramento Bee for guidance on what to do if they already filed their taxes and made the claim, with no clear answer from the IRS until now.
READ ALSO: How To Use The California Middle Class Tax Refund Debit Card
