Many of you heard about the Middle Class Tax Cut that California and New York (and Virginia and about 20 other states) issued this year. I warned clients (and the tax preparation firm I advise) when these began showing up as 1099s that we’ll have to see how that $ 200 to $ 1050 payments made by California (some 23 million Californians will be depositing about $ 9 billion for to cover inflation and higher gas prices); an average of $ 270 to those residing in New York (bottom portion of the income scale); Oregon with its $ 600 payment for low-income folks; Virginia’s hopes that theirs will be considered a tax refund (not a stimulus, sift o no itemization it would mean it is not taxable); and Georgia with $ 500 who filed a 2021 return, among others like Colorado, Illinois and South Carolina.)
Continue reading Most of the State’s Middle Class Tax Rebates won’t be taxed by the Feds
