Early filers can amend 2022 returns to recover taxes, says IRS – Silicon Valley
The IRS reversed course this week, advising early tax filers who included middle-class tax refunds as taxable income to get their money back by amending their 2022 federal tax returns.
Issued by the Internal Revenue Service Tuesday, April 11th For various tax refunds issued by 21 states, including California.
“Taxpayers who filed before February 10 should check their tax returns to ensure they paid the taxes for the state refund before filing an amended return,” the IRS said. said.
The agency also suggested taxpayers first consult with their tax advisor or accountant to determine if an amended return is required.
Exactly two months ago the agency advised Taxpayers not amending their 2022 returns.
MCTR It was intended to be a stimulus payout to California residents who were paying a lot for just about everything thanks to record-high inflation. We secured $9 billion from the budget surplus to send “refunds” in the $1,050 range to eligible taxpayers. (Social Security and welfare recipients who did not file taxes were not covered by the MCTR.)
It sounds simple, but Direct $9 billion to 16.8 million people It wasn’t that simple. A third-party vendor, Money Network, was hired to curb the fraud. Instead, it struggles to get paid to recipients, clogged phone line And millions of deeply dissatisfied Californians.
The new year brought a lot of confusion for MCTR recipients who received their 1099 forms from the IRS. Courtesy of the Franchise Tax Commission.
Will inflation rebates be taxed as 1099 normally requires? For weeks no one knew.
Related: Tax filing deadlines change to October for most of California
An accountant pondered this question in a blog post. Local readers sent dozens of emails asking for guidance. (Don’t worry about getting hundreds of emails asking for help. “Where’s the refund?” Some of them remain today. )
By February 10, two weeks after the tax season began, the IRS issued official guidance. MCTR says it will not be taxed.
“Many state taxpayers will not be required to report these payments on their 2022 tax returns due to sound tax administration and other factors,” the IRS said on Feb. 10.
The IRS said its investigation determined that it “does not contest the taxability of payments related to general welfare and disaster relief.”
And if you’re filing your amended 2022 returns, the IRS notified you on Tuesday that they can be filed electronically. Relevant refunds are now available for direct deposit.
On February 9, the IRS announced that for the first time, people filing Form 1040-X electronically will be able to “opt out of direct deposit for the resulting refund.”
The IRS began accepting Form 1040-X electronically in 2020, but did not offer direct deposit as a refund option until 2023.
Would you like us to send you an amended return on paper? Please send it here:
- Ministry of Finance
- Internal Revenue Service
- Austin, Texas 73301-0052
If you still haven’t received your middle class tax refund and you think you may be eligible, please call the number below.
debit card customer line is 800-542-9332.
Franchise Tax Commission At 1-800-852-5711.
https://www.siliconvalley.com/2023/04/12/middle-class-tax-refund-early-filers-can-amend-2022-returns-to-recoup-taxes-irs-says/ Early filers can amend 2022 returns to recover taxes, says IRS – Silicon Valley