Stimulus Update: IRS Says You May Want to Hold Off on Filing Taxes if You Got a 2022 Stimulus Check

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Don’t file your taxes without reading this first. 

If you are eager to file your taxes in order to obtain a tax refund, a Feb. 3 alert from the IRS may bring unwelcome news.

The agency warned that if you received state stimulus funds in 2022, you may want to delay submitting your tax forms until there’s more clarity regarding whether you will be taxed on the money or not.

Here’s what you need to know if you got a stimulus check in your bank account last year.

State stimulus checks in 2022 are creating tax complications

In 2022, the federal government did not send out stimulus checks. However, a number of states did. If you received a payment last year, chances are good that it came from your state.

When the federal government issued checks, the money was considered an advance on a tax credit so there was no question about whether you would owe taxes on it or not. Because the stimulus money was a tax credit, it was not income and thus was not taxable.

Things are murkier when it comes to the state stimulus checks, though. In fact, the IRS is not yet clear on how the funds will be treated for tax purposes — although the recent news release the agency sent out made clear that the agency is trying to resolve open questions now.

“The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers,” the news release said. “There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex.”

Unfortunately, because this issue has not been resolved, anyone who got a state stimulus check should seriously consider putting off submitting their tax returns, according to the IRS.

“For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available,” the IRS statement reads. ” For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS.”

Should you wait to file a return?

If you are affected by this announcement, it is worth heeding the advice of the IRS.

If you submit your tax return and the IRS later makes a decision on the taxability of your state payment that affects your taxes, you could otherwise find yourself having to submit an amended return down the road (or having to wait for the IRS to make an automatic correction). You could potentially find yourself having to pay back some of your refund if you ended up underpaying your taxes because you didn’t realize the stimulus from your state counted as income.

If you already submitted your 2022 return, though, you don’t want to try to make any changes yet. “We also do not recommend amending a previously filed 2022 return,” the IRS said.

So, while it may be frustrating, the best thing to do is to sit tight and wait for more guidance — even if that does mean putting off getting your refund for a little longer.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

 Read More