IRS News Release: Early Filers Who Reported Certain State Tax Refunds as Taxable Should Consider Filing Amended Returns for Possible Refunds

The IRS April 11 announced that taxpayers who filed their federal income taxes early in the filing season and reported certain state 2022 tax refunds as taxable income should consider filing an amended return. The IRS in February (IR-2023-23) provided details clarifying the federal tax status involving special payments made to taxpayers by 21 states in 2022. During a review the IRS determined that in the interest of sound tax administration and other factors, taxpayers in many states didn’t need to report these payments on their 2022 tax returns. [IR-2023-77 (Apr. 11, 2023)]

This story was produced by Bloomberg Tax ...