I received a 300.00 check from delaware relief reabte program, where do you report this ?

[ErnieS0]

The Delaware Relief Rebate is not taxable on the state return. The state passed a law in Jan. declaring the payment a nontaxable federal disaster payment.

However Delaware said "it makes no representations or warranties regarding whether the receipt of a relief rebate issued during the period that the federal major disaster declaration exists for the State should be included in a taxpayer’s gross taxable income for federal income tax purposes."

Flat payment amounts without regard to income are generally not taxable because they are not based on income (everyone gets the same amount).

There is a bill in the Delaware legislature to declare the payment not taxable for federal purposes.

You may wish to wait to file while this is being debated, or your without the rebate with the understanding you may have to file an amended return later on.

House Bill 25

[Edited 02/04/22 | 15:05 PST to update that the bill was passed and signed by the Governor.

@bonjames900

[LoLoQuilts]

The IRS has recently stated these funds are not taxable.  Do they need to be reported?  I have not received a 1099-G from Delaware for these funds.

[ErnieS0]

No the Delaware Relief Rebate does not have to be reported. You are correct @LoLoQuilts. The IRS just said general welfare and disaster relief payments from the following states fall in this category and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022.

• Alaska [1]
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Hawaii
• Idaho
• Illinois [2]
• Indiana
• Maine
• New Jersey
• New Mexico
• New York2
• Oregon
• Pennsylvania
• Rhode Island

For a list of the specific payments to which this applies, please see this chart.