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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