Inflation Relief Payments In Most States Not Taxable, IRS Says

The Internal Revenue Service (IRS) states that the inflation relief payments in most U.S. states will not be taxable. This was announced a week after they encouraged to delay the filing of tax returns.

Inflation Relief Payments [Photo: The National Interest]

An article on the CBS News states, however, that on February 10, the IRS has announced that the relief payments will not be considered taxable in the 2023 tax returns anymore. This is because the IRS decided that they would not disagree with the taxability of the payments for the welfare of the general public and relief during a disaster.

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Inflation Relief Payments Not Taxable In These States

According to an article on the NPR, the IRS announced that there are a few states where the inflation relief payments should not be reported by taxpayers anymore. These states include Rhode Island, Pennsylvania, Oregon, New York, New Mexico, New Jersey, Maine, Indiana, Illinois, Idaho, Hawaii, Florida, Delaware, Connecticut, Colorado, and California. This guideline is also applicable to the energy relief payments in the state of Alaska that were added to their annual Permanent Fund Dividend.

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