Submitted By: someone
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

Straddle

Taking an offsetting investment position to reduce the risk of loss in a similar investment.

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