- California: The Middle Class Tax Refund is exempt from federal and state taxes
- A cash basis taxpayer reports income when it is actually received, and reports expenses when they are paid. The majority of people who file individual income tax returns are cash basis taxpayers.
See Pub 538 - see page 8 @kkt2
Under the cash method, you include in your gross income all items of income you actually or constructively received during the tax year. If you received property and services, you must include their fair market value (FMV) in income.
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