Don't file your taxes yet, IRS says amid confusion over state benefits
The Internal Revenue Service is telling taxpayers - including more than 16 million in California - to hold off filing their taxes until the agency can issue guidance on state-issued inflation payments.
Dozens of states distributed stimulus-like payments or tax rebates in 2022 to counter inflation, which reached a 40-year high in 2022. The IRS on Tuesday said it needed more time to determine which of those payments are federally taxable, and told taxpayers not to submit returns until it finalized those rules.
"For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional," the agency said. "For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS."
https://www.sfgate.com/business/article/don-t-file-your-taxes-yet-irs-says-amid-17769804.php