Stumbling Start to Tax Season

The 2023 tax season kicked off January 23. Eleven days later, the IRS suggested that many taxpayer hold off on filing while they prepared guidance on a unique problem affecting millions of taxpayers. In 2022, many states responded to the pandemic by sending their residents special tax refunds or other payments. Were recipients of these payments required to report them as income on their federal income tax returns? Fortunately, most were not.

details: 2022 State Pandemic Payments

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