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Jul 26, 2024  |  
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Asher Notheis, Breaking News Reporter


NextImg:IRS says California's Middle Class Tax Refund will not have to be reported as taxable

The Internal Revenue Service will not require California residents to report a payment from the state as taxable when filing their taxes.

A state payment made to help the general welfare or issued by the state as a disaster relief payment could make it excused from income for federal tax purposes. Other states that issued similar payments that can be excused from income include Colorado, Florida, Hawaii, and Maine, among others, according to the IRS.

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The news comes only a few days before California's Middle Class Tax Refund will complete its run on Tuesday, issuing all recipients their payments ranging from $200 to $1,050. The tax season for filing 2022 taxes began on Jan. 23, with all tax returns due on April 18.

For California residents to get the full amount of $1,050 from this payment, joint filers must have had an adjusted gross income of $150,000 or less for the 2020 tax year. The smallest amount one can receive from this refund is $200, which will be given to single filers who had an adjusted gross income between $125,001 and $250,000 for the 2020 tax year and do not have dependents.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Anyone with an adjusted gross income of over $500,000 is not eligible to receive a payment from this refund.

The IRS has also informed the public that state payments that were refunds of state taxes do not need to be included as income for federal tax purposes. States where these types of payments were made to residents include Georgia, Massachusetts, South Carolina, and Virginia.