Stimulus Check 2023: IRS Has A New Advice For Taxpayers

stimulus check

The IRS has issued a critical caution for early filers as the tax filing deadline approaches. Some receivers of state stimulus payments should think about filing updated forms, according to the IRS. The IRS recently decided not to tax special payments from the states, and this government release pertains to that decision.

The special payments (inflation relief checks, tax rebates, or stimulus checks) that people received from their state last year caused a lot of uncertainty this year. Regarding the taxability of these payments, there was some ambiguity.

Stimulus Check For Amended Returns

The IRS first requested that people delay their tax returns until it reached a determination on the issue. The organization eventually discovered that several of the government payments were

However, many persons had already submitted their tax returns by the time the IRS issued its ruling (on February 10). Because some of these early filers declared the special payments as taxable income, they are now entitled to a refund.

Such receivers of stimulus funds may consider amending their tax filings. The government stated in its judgment that it “provided details explaining the federal tax status regarding special payouts made to individuals by 21 states in 2022.”

The IRS is requesting that taxpayers who filed their returns prior to February 10 review the guidelines and confirm that their return complies with the standards. 

Such recipients of stimulus checks should think about submitting revised forms if they have already paid taxes on the special payments but are not compelled to since they could be entitled to a refund. 

If taxpayers decide they need to file an updated return, they can do so by using the same electronic filing method they used to submit their initial 2022 tax return. Such taxpayers also have the choice of receiving their refund via direct transfer.

Taxpayers who file an updated return on paper will only receive a paper Stimulus Check; they will not be able to obtain their refund via direct deposit.