Tax Return 2023 Must Be Put On Hold In 22 U.S. States, IRS Says

The Internal Revenue Service (IRS) encourages 22 states in the U.S. to put on hold the filing for their tax return 2023. This is because the IRS is still not certain whether tax rebates and refunds are considered as taxable income.

Internal Revenue Service [Photo: Tax Foundation]

According to an article on CBS News, 22 of the U.S. states were authorized to issue tax rebates in 2022. Fortunately, the IRS has finally decided that these tax rebates will not be reported as income in the tax return 2023.

READ ALSO: IRS Warns Of Smaller Tax Refunds In 2023: How To Lower Your Tax Bill And Boost Your Return

22 U.S. States Announced by IRS

• Alaska (except for the annual Permanent Fund Dividend that is taxable on the federal level.)
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Hawaii
• Idaho
• Illinois
• Indiana
• Maine 
• New Jersey
• New Mexico
• New York
• Oregon
• Pennsylvania 
• Rhode Island

An article on Yahoo Finance says that the IRS stated that taxpayers from Georgia, Massachusetts, South Carolina, and Virginia would also not have to report their tax rebates as income in their tax return 2023. This may be possible if the taxpayers from these states meet a few requirements. These requirements include whether the tax rebates are refunds of the state taxes that have been paid. It may also be the standard deduction or itemized deductions the taxpayer claimed but did not receive as a tax benefit.

READ ALSO: State Stimulus Checks 22: List Of States Exempted In Income Tax Return 2022, IRS Says!