We're only going after the big guys
Some states last year collected more tax revenue than allowed, as set by their individual limits. As a result they sent many taxpayers refunds. Now the IRS is considering whether those refunds will be taxed. If so, amended returns may have to be filed for 2022. The following article refers to Massachusetts, but also lists all the other states that could be affected.
BOSTON, MA — Massachusetts residents who got a refund last year under the 62F law should hold off on filing their 2022 tax returns while the Internal Revenue Service sorts out whether it’s taxable, the agency has said. Massachusetts was one of 19 states that offered various tax refunds or relief last year. The 62F refunds began going out to residents in November and were equivalent to about 13 percent of the previous tax year's liability......
The Massachusetts refunds were issued under a little-known 1980s law — 62F — that says tax revenue growth in the state can't exceed the sum of wages and salaries of all state residents in a given fiscal year. The state collected $41.8 billion in tax revenue in fiscal year 2022, which is $2.94 billion more than allowed under against the wages and salaries last year. Some states — including Massachusetts — have said the payments aren’t subject to state income taxes. What needs to be determined is if they are taxable at the federal level, Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, told The Associated Press.....
Other states that offered inflation relief in 2022 were Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina and Virginia.
IRS May Tax Massachusetts Refunds Sent In 2022 Under 62F Law
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Some states last year collected more tax revenue than allowed, as set by their individual limits. As a result they sent many taxpayers refunds. Now the IRS is considering whether those refunds will be taxed. If so, amended returns may have to be filed for 2022. The following article refers to Massachusetts, but also lists all the other states that could be affected.
BOSTON, MA — Massachusetts residents who got a refund last year under the 62F law should hold off on filing their 2022 tax returns while the Internal Revenue Service sorts out whether it’s taxable, the agency has said. Massachusetts was one of 19 states that offered various tax refunds or relief last year. The 62F refunds began going out to residents in November and were equivalent to about 13 percent of the previous tax year's liability......
The Massachusetts refunds were issued under a little-known 1980s law — 62F — that says tax revenue growth in the state can't exceed the sum of wages and salaries of all state residents in a given fiscal year. The state collected $41.8 billion in tax revenue in fiscal year 2022, which is $2.94 billion more than allowed under against the wages and salaries last year. Some states — including Massachusetts — have said the payments aren’t subject to state income taxes. What needs to be determined is if they are taxable at the federal level, Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, told The Associated Press.....
Other states that offered inflation relief in 2022 were Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina and Virginia.
IRS May Tax Massachusetts Refunds Sent In 2022 Under 62F Law
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