Quick update for you on a pesky issue that tax pros have been waiting to resolve:
- IRS announced on Friday that the “stimulus payments” that many states made in 2022 are, in most cases, NOT taxable on 2022 federal tax returns.
- IRS has decided to allow (most) of these payments to qualify as non-taxable under the “general welfare” and “disaster relief” tax exemption rules.
- The California Middle Class Tax Refund (MCTR), for example, is now confirmed as NOT taxable.
Payments from Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island are also confirmed as non-taxable on federal returns.
- Here is the press release from IRS providing more details and showing which state payments are little more “nuanced” or may be taxable.
If you have questions or need help on this issue or any other issue during tax season, please remember to take advantage of the extensive support resources we provide through your Pronto Tax School Membership.
- The Tax Preparer Teamwork Group on Facebook is available to ALL active Pronto Tax School Members, and we have recently increased the number of Expert Mentors we are paying to answer questions in that Group, including adding an International Tax Mentor and a Trusts and Estates Mentor. Most questions in the Group are answered same day and by multiple people.
- If you’re a Dream Team Member, you get access to that Tax Preparer Teamwork Group, plus the Business Tax Brain Trust Group (specifically for more advanced corporation, partnership, and LLC questions), plus 3 live (on Zoom) Mentor Support Sessions each week where you can show up and ask questions directly to our Expert Mentors who want to help you and can, plus you can contact the Pronto Tax School Leadership Team if you have questions or need help and we will just directly and privately help you.
If you have questions about Pronto Tax School Membership or the support resources we provide for tax pros to enjoy less stress and more success, please feel free to contact our support team support@prontotaxschool.com or 310-422-1283 (text message also OK to that number).
