From the Caltax forum:
Is the CA Stimulus going to be Federally taxable? Will we need to report it on the returns (either way)?
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December 1, 2021, at 11:41 am
Mark Bole Participant
Almost certainly not. There is an administrative exception to taxable income, called the “General Welfare Exception” (GWE), which applies.
“To qualify under the GWE, payments must
http://www.journalofaccountancy.com/issues/2006/may/generalwelfareexclusion.html
I believe this is also why such items as the California Premium Assistance Subsidy or other refundable tax credits are also not taxable.
- Be made from a government fund.
- Be for the promotion of the general welfare, based on individual or family need.
- Not be made as payment for services. “
@LA2022
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