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State tax filing
I would suggest waiting until the IRS rule on this rebate. According to this IRS source, the IRS suggest that taxpayers wait until additional guidance is available or consult with a reputable tax professional.
Now being a reputable tax professional myself, I would wait until additional guidance is available. Some professionals may suggest reporting this either as taxable income or not reporting this at all and then amending the return to reflect the change.
It does say in the IRS link I provided that the IRS suggests not to amend a previously filed 2022 return. I would imagine this is because of the volume of amended returns they will receive because of this issue.
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‎February 9, 2023
11:21 AM