Most taxpayers in the 21 states that sent stimulus checks or tax rebates in 2022 are not required to pay taxes on those payments on this year's federal tax returns,
the Internal Revenue Service announced Friday evening.
The guidance clarifies how taxpayers should treat these payments and allows those waiting to file to proceed.
It also means that for the most part, residents in the affected states who have already filed their taxes do not need to amend their returns.
The agency said it "will not challenge the taxability of payments related to general welfare and disaster relief,"
so taxpayers who received payments from the following states are not required to report them on their 2022 federal tax returns:
Alaska is also included in this group, except for those who have received annual payments of Alaska Permanent Fund dividends.
That is considered taxable income on the federal tax return, the statement said.
Any other payments provided as compensation for workers are also taxable at the federal level.