News

Are State Tax Refunds And Rebates Federally Taxable? It Depends.

February 17, 2023
The IRS has finally ruled on the tax treatment for the various state relief payments during 2022 and the ruling is favorable! For those wondering if the state general welfare and disaster relief payments are taxable, the IRS has stated they are not taxable for the following states:

Alaska
California
Colorado
Connecticut
Delaware
Florida
Hawaii
Idaho
Illinois
Indiana
Maine
New Jersey
New Mexico
New York
Oregon
Pennsylvania
Rhode Island

If you live in the following states and received a refund in which you benefited from deducting the tax as an itemized deduction in 2022, then the refund would be taxable:
Georgia
Massachusetts
South Carolina
Virginia

Please reach out to your team at @Brandywine Oak Private Tax Advisory or your own tax advisor for questions related to your specific tax situation. To learn more about this topic, please read Forbes https://www.forbes.com/sites/ambergray-fenner/2023/02/06/are-state-tax-payments-federally-taxable-it-depends/?sh=66165226c1fa.

#BOPW #Taxes