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.

Tax Glossary

Inter vivos or lifetime trust

A trust created during the lifetime of the person who created the trust. If irrevocable, income on the trust principal is generally shifted to the trust beneficiaries.

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