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Is my state stimulus payment taxable?

by Intuit Updated 4 months ago

Whether your 2022 state stimulus payment is taxable income depends on where you live.

  • Alaska: See our article for more info
  • California: The Middle Class Tax Refund is exempt from federal and state taxes
  • Colorado: The Colorado Cash Back is exempt from federal and state taxes
  • Connecticut: The Child Tax Rebate is exempt from federal and state taxes
  • Delaware: The Relief Rebate Program is exempt from federal and state taxes
  • Florida: The Pandemic Temporary Assistance to Needy Families is exempt from federal and state taxes
  • Georgia: The Surplus Tax Refund is only exempt from federal and state taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)
  • Hawaii: The Act 115 Refund is exempt from federal and state taxes
  • Idaho: The 2022 Tax Rebates are exempt from federal and state taxes
    • Idaho plans to reissue corrected 2022 1099-Gs. The original 1099-G issued included both the nontaxable Special Session Rebate and the normal tax refund. Only include the amount on your corrected 1099-G.
  • Illinois: The Individual Income Tax and Property Tax Rebates are only exempt from federal and state taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)
    • You may need to adjust your 1099-G to remove the nontaxable property tax
  • Indiana: The Automatic Taxpayer Refunds #1 and #2 are exempt from federal and state taxes
    • Only include the routine tax refund which can be found on your 2021 Indiana Tax Return, Form IT-40, Line 21
  • Maine: The Pandemic Relief Payments are exempt from federal and state taxes
  • Massachusetts: The Chapter 62F Taxpayer Refunds are only exempt from federal and state taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)
  • New Jersey: The ITIN Holders Director Assistance Program is exempt from federal and state taxes
  • New Mexico: The multiple rebate and relief programs are exempt from federal and state taxes
  • New York: New York issued two payments--the additional New York State child and earned income tax payments. One is a refund of taxes (federally taxable in some situations) and the other is a disaster relief payment (nontaxable). The IRS hasn't said which payment is a refund and which isn't. Neither are taxable on your New York state taxes.
    • If your payment is the refund, it's exempt from federal taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)
  • Oregon: The One-Time Assistance Payments are exempt from federal and state taxes
  • Pennsylvania: The One-Time Bonus Rebates are exempt from federal and state taxes
  • Rhode Island: The 2022 Child Tax Rebates are exempt from federal and state taxes
    • Your 1099-G may include both your regular 2021 refund and the Child Tax Rebate. Only report your 2021 Rhode Island Tax Refund amount on your taxes.
  • South Carolina: The South Carolina 2022 tax rebate is only exempt from federal and state taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)
  • Virginia: The 2022 One-Time Tax Rebate are only exempt from federal and state taxes if you claimed the Standard Deduction or itemized your deductions, but didn't receive a tax benefit (for example, because the $10,000 tax deduction limit applied)

Read the entire IRS guidance here.

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