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Submitted By: someone
Answered: March 17, 2023 2:46 am
Answered: March 17, 2023 2:46 am
In 2022, I received a middle class tax rebate from my state (California). Is this taxable?
No. The IRS recently said that special tax payments related to the pandemic made by states are not includible in gross income. The IRS looks at the payments as falling under either the general welfare exclusion or as nontaxable disaster relief payments.
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Tax Glossary
Withholding
An amount taken from income as a prepayment of an individual’s tax liability for the year. In the case of wages, the employer withholds part of every wage payment. Backup withholding from dividend or interest income is required if you do not provide the payer with a correct taxpayer identification number. Withholding on pensions and IRAs is automatic unless you elect to waive withholding.
