{"id":61940,"date":"2023-02-16T18:11:47","date_gmt":"2023-02-17T00:11:47","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=61940"},"modified":"2023-03-11T10:49:20","modified_gmt":"2023-03-11T16:49:20","slug":"taxability-one-time-payments","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/filing\/states\/taxability-one-time-payments\/","title":{"rendered":"Special 2022 state rebates and payments are generally not taxable according to the IRS"},"content":{"rendered":"\n<p>While one-time state payments brought relief in 2022, they also had taxpayers holding up their returns in early 2023. Why? The IRS had encouraged Americans to wait on filing 2022 returns as it determined the federal taxability of those payments.<\/p>\n\n\n\n<p>Now, the IRS has clarified that certain 2022 state-level pandemic-related payments and state tax refunds are generally nontaxable on the federal level, and, depending on your state, don\u2019t need to be reported on your taxes at all.<\/p>\n\n\n\n<p>Sound complex? Don\u2019t worry! We\u2019re here to outline everything you need to know about these special state payments, so you can file your taxes confidently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-review-special-payment-taxability-guidelines\">Review special payment taxability guidelines<\/h2>\n\n\n\n<p>To understand what applies to you, review the following payment descriptions, and find your state in the table below.<\/p>\n\n\n\n<p><strong>General welfare and disaster relief payments<\/strong> \u2013 Normally, a thorough investigation is required to see if your payment can be excluded from federal taxes. However, because of the unique situation of the outgoing pandemic (the pandemic declaration ends this May), the IRS has said if you don\u2019t include the payment on your taxes, the IRS won\u2019t challenge the amount as taxable.<\/p>\n\n\n\n<p>In other words, even if you received a Form 1099 showing your one-time 2022 payment, you can exclude it on your federal return, and it won\u2019t be taxable. See the table below.<\/p>\n\n\n\n<p><strong>Refund of state taxes paid<\/strong> \u2013 In 2022, did you receive a refund of state taxes paid for a previous tax year? You may be able to exclude the payment:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you claimed the standard deduction or if you itemized deductions <strong>and<\/strong><\/li>\n\n\n\n<li>Did not receive a tax benefit [for example, because the $10,000 state and local tax (SALT) deduction limit applied].<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>General Welfare and Disaster Relief Payments<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><strong>Refund of State Taxes Paid<\/strong><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Can exclude federally and won\u2019t be taxable<\/td><td class=\"has-text-align-left\" data-align=\"left\">Can exclude federally if you didn\u2019t receive a tax benefit the year the taxes were deducted<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Alaska*\u00a0<\/td><td class=\"has-text-align-left\" data-align=\"left\">Georgia<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">California<\/td><td class=\"has-text-align-left\" data-align=\"left\">Massachusetts<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Colorado<\/td><td class=\"has-text-align-left\" data-align=\"left\">South Carolina<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Connecticut<\/td><td class=\"has-text-align-left\" data-align=\"left\">Virginia<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Delaware<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Florida<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Hawaii<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Idaho<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Illinois**\u00a0<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Indiana<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Maine<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">New Jersey<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">New Mexico<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">New York**<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Oregon<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Pennsylvania<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\">Rhode Island<\/td><td class=\"has-text-align-left\" data-align=\"left\"><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You can find the list of one-time excludable payments on the <a href=\"https:\/\/www.irs.gov\/newsroom\/state-payments\">IRS website<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Ready to file your federal and state taxes? We\u2019re here to help!<\/h2>\n\n\n\n<p>Whether you prefer to work with a <a href=\"https:\/\/www.hrblock.com\/tax-offices\/\">tax pro<\/a> or file on your own with <a href=\"https:\/\/www.hrblock.com\/online-tax-filing\/\">H&amp;R Block Online<\/a>, we\u2019ve got you covered.<\/p>\n\n\n\n<p>* Only for the supplemental Energy Relief Payment received in addition to the annual Permanent Fund Dividend.<\/p>\n\n\n\n<p>**&nbsp;Illinois and New York issued multiple payments and in each case one of the payments was a refund of taxes, which should be treated as noted above, and one of the payments is in the category of disaster relief payment.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>While one-time state payments brought relief in 2022, they also had taxpayers holding up their returns in early 2023. Why? The IRS had encouraged Americans to wait on filing 2022 returns as it determined the federal taxability of those payments. Now, the IRS has clarified that certain 2022 state-level pandemic-related payments and state tax refunds [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":61967,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[125,19814,23349],"tags":[],"class_list":["post-61940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-filing","category-states","category-whats-new"],"acf":[],"yoast_head":"<title>Special 2022 State Tax Payments Taxability | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Did you receive a special state payment in 2022? 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