AP (NEW)

IRS urges special refund recipients to delay filing taxes

Feb 7, 2023, 9:30 AM | Updated: Feb 8, 2023, 9:06 am

Salt Lake City residents are the third worst procrastinators when it comes to filing on time....

FILE - A sign hangs outside the Internal Revenue Service building in Washington, on May 4, 2021. (AP Photo/Patrick Semansky)

(AP Photo/Patrick Semansky)

NEW YORK (AP) — The Internal Revenue Service is recommending that taxpayers hold off on filing their tax returns for 2022 if they received a special tax refund or payment from their state last year.

Last year, 19 states offered diverse programs that offered inflation relief payments or refunds for taxpayers. The IRS issued the guidance Friday due to the agency’s uncertainty about the taxability of the payments.

“We are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers,” the IRS said in its statement.

For residents from states such as California and Illinois, the agency is recommending that they hold off on filing their tax returns until they receive further instruction from the IRS.

If you received a state tax refund last year, here is what you need to know.

I GOT A TAX REFUND FROM MY STATE. WHAT DOES THE IRS STATEMENT MEAN FOR ME?

If you got a tax refund from your state in 2022, the IRS is recommending you hold off on filing your tax return until the agency gives further instructions. Certain states that provided these refunds have determined that these payments are not taxable for most people. What needs to be determined is if these refunds are taxable on the federal level, said Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals.

In some states, people would get taxed if they received a tax refund in 2022 only if they itemize their deductions, said Keith Hall, president and CEO of the National Association for the Self-Employed. An example of a state that is taking this route is Virginia, which has stated that taxpayers that filed a standard deduction will not be taxed for their tax rebate. However, not all states have issued guidance on tax rebates.

WHY SHOULD I WAIT TO FILE MY RETURN?

Following the IRS recommendations is key if taxpayers want to avoid having to amend a previously filed tax return, said Hall.

“I think the IRS is trying to help people save another filing, if they had to do an amended return,” he said.

I RECEIVED A REFUND AND ALREADY FILED MY TAXES. WHAT SHOULD I DO?

The IRS is recommending that you don’t file an amended return yet. If you believe you need to file an amended return, the IRS advises you to wait until further instructions are given.

WHICH STATES OFFERED SPECIAL TAX REFUNDS IN 2022?

Special tax refunds were offered by 19 states in 2022. The list includes Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, and Virginia.

WHAT IF I’M NOT SURE IF THIS APPLIES TO ME?

If you are not sure if you need to wait to file your taxes, Hall recommends you consult with a tax professional about your specific situation.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

AP (New)

Park City resident Connor Curran gets his first podium finish (2nd place) in aerials at the 2024 Fr...

Joe Davis

Park City resident wins podium finish at World Cup

Park City resident and US Freestyle Aerialist, Connor Curran won a World Cup Podium Finish at Deer Valley on Friday night.

20 days ago

Police in a Virginia suburb of the nation’s capital are investigating a massive explosion at a ho...

MATTHEW BARAKAT, AP

Virginia police investigate explosion at house where officers were trying to serve a search warrant

Police in a Virginia suburb of the nation’s capital are investigating a massive explosion at a house where police were investigating.

3 months ago

a person wheels their shopping cart in front of target storefront...

Associated Press

What’s open and closed on Thanksgiving this year?

A lot of national retailers are keeping the doors closed on Thursday to give employees time with families and to recharge for the holidays ahead.

3 months ago

Associated Press

Honda recalls nearly 250K vehicles because bearing can fail and cause engines to run poorly or stall

The recall covers certain 2018 and 2019 Honda Pilot SUVs and Odyssey minivans and some 2017 and 2019 Ridgeline pickup trucks.

3 months ago

amazon logo shown, Amazon lays off employees as the company look to AI...

Associated Press

Amazon lays off hundreds in its Alexa division as it plows resources into AI

In a note to employees on Friday, Daniel Rausch, Amazon’s vice president of Alexa and Fire TV, wrote that the company is eliminating certain roles because it is ditching some initiatives.

3 months ago

Fulton County prosecutors want the Georgia election subversion trial of Donald Trump and his co-def...

KATE BRUMBACK, AP

Georgia prosecutor seeks August trial date for Trump and others in election case

A GA prosecutor is seeking an August trial date for former President Donald Trump and others charged over efforts to overturn the election.

3 months ago

Sponsored Articles

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

front of the Butch Cassidy museum with a man in a cowboy hat standing in the doorway...

Bear Lake Convention and Visitors Bureau

Looking Back: The History of Bear Lake

The history of Bear Lake is full of fascinating stories. At over 250,000 years old, the lake has seen generations of people visit its shores.

silhouette of a family looking over a lake with a bird in the top corner flying...

Bear Lake Convention and Visitors Bureau

8 Fun Activities To Do in Bear Lake Without Getting in the Water

Bear Lake offers plenty of activities for the whole family to enjoy without having to get in the water. Catch 8 of our favorite activities.

Wellsville Mountains in the spring with a pond in the foreground...

Wasatch Property Management

Advantages of Renting Over Owning a Home

Renting allows you to enjoy luxury amenities and low maintenance without the long-term commitment and responsibilities of owning a home.

Clouds over a red rock vista in Hurricane, Utah...

Wasatch Property Management

Why Southern Utah is a Retirement Paradise

Retirement in southern Utah offers plenty of cultural and recreational opportunities. Find out all that this region has to offer.

IRS urges special refund recipients to delay filing taxes