Last year, 19 states - including California - offered diverse programs that offered inflation relief payments or refunds for taxpayers.
Keep in mind that there is a difference between state and federal taxes, the Franchise Tax Board is reminding Californians. The MCTR is not taxable income, but could possibly be considered federal income, according to the FTB. That's why migt receive a 1099-MISC form if you received a MCTR/inflation relief payment of at least $600. Following the IRS recommendations is key if taxpayers want to avoid having to amend a previously filed tax return, said Hall.
"I think the IRS is trying to help people save another filing, if they had to do an amended return," he said.The IRS is recommending that you don’t file an amended return yet. If you believe you need to file an amended return, the IRS advises you to wait until further instructions are given.Special tax refunds were offered by 19 states in 2022. The list includes Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, and Virginia.
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