California Golden State Stimulus payments and Federal Tax

[galefebvre]

Will the California Golden State Stimulus II Payments be considered a taxable income by the IRS when we file our 2021 Federal tax return?

[xmasbaby0]

Stimulus payments are not taxable.

[galefebvre]

Thanks. I knew that the California Golden State Stimulus payments were not taxable by the State but was not sure about Federal Taxes.

[FortMcHenry1]

The question includes asking if the federal (meaning the IRS) has also stated a position on the

California Golden State Stimulus payment.

Please list the specific section of the IRS code defining this position.

[RobertB4444]

@fortMcHenry  That's not how the tax code works.  Things that are not taxed are not listed in the tax code - just the things that are taxed.  Since there is no section of the tax code requiring the taxing of stimulus payments they are not taxable.  

[Blonde]

you have that backwards.  IRC S.61 says all income from any source of any type is taxable.  Incomes not taxable are then excepted.

[theodoreable]

As an FYI...the Inflation Relief Payments appear to be taxable @ a Federal level.....The FTB is NOW issuing 1099s to the Taxpayers.  We have had 4 or 5 calls from clients.

The IRS took a generic position stating it is taxable since it is income...but this goes against all the rational of the Fed and other two stimulus checks from Governor Gruesome....I mean Newsome.