IRS Warns Tax Filers To Wait To File Your Tax Returns For 2023. Here's Why
The IRS is asking people to hold off filing until it issues guidance on handling state refunds and rebate payments, which were issued last year.
It’s everyone’s favorite time of year: tax season. Although the deadline to file 2022 taxes feels far away, April 18 will be here before we realize it, so it’s not too early to begin thinking about getting your tax forms in order and figuring out your new tax bracket. But the Internal Revenue Service (IRS) warns you may want to wait to file. Here’s why.
Why is the IRS telling people to wait to file?
According to The Washington Post, the IRS is asking people to hold off filing until the agency issues guidance on handling state refunds and rebate payments, which were issued in 2022. Several states offered programs to aid in inflation relief, and the program details vary by state.
Those payments could count as taxable income, and it hasn’t yet been determined how they should be claimed by the states.
“There are a variety of state programs that distributed these payments in 2022, and the rules surrounding them are complex,” the IRS explained in a release. “We expect to provide additional clarity for as many states and taxpayers as possible next week.”
Who exactly should wait to file?
Last year, 19 states offered special tax refunds — the state programs the IRS is working on that filers should wait.
The states, according to The Street, include Alaska, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, and Virginia.
"For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional," the IRS explained in its release.
For anyone in those states who has already filed their taxes and may need an amendment, the IRS is also suggesting those people wait for more guidance before amending. So hang tight!
Does this mean the April deadline has been changed?
No, even if you live in one of the 19 states with special tax refunds, you’ll still need to stick to your April filing deadline.
“While this announcement in no way alters the April 18 deadline for filing, the IRS told both taxpayers and accountants with questions not to wear out the lines trying to get answers before the agency provides official guidance,” The Street explains.
If you’re unsure how or what to do with your taxes, it’s always best to check in with a qualified tax professional who can speak to your specifics.
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