By: Jon Healey | Los Angeles Times
Relax, Californians — the Middle Class Tax Refund you received last year will not be subject to federal taxes.
The Internal Revenue Service issued long-awaited guidance Friday afternoon, saying it “determined it will not challenge the taxability of payments related to general welfare and disaster relief.” California’s Middle Class Tax Refund falls into that category, the agency said, as do the payments in 16 other states.
According to the IRS, you won’t need to report the payment as income on your 2022 return. So recipients can ignore the federal 1099-MISC form sent out last month by the state Franchise Tax Board.
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