IRS Says Taxpayers in Some States May Be Eligible for Bigger Refunds

The Internal Revenue Service (IRS) said Tuesday that taxpayers in nearly two dozen states should consider filing amended tax returns because they may have needlessly reported income from relief payments and so stand to get bigger refunds.
The IRS said in a press release that taxpayers who reported certain state payments related to general welfare and disaster relief as taxable income on their tax returns did so, in many cases, unnecessarily.
That’s because the IRS earlier this year made a determination that “in the interest of sound tax administration and other factors,” taxpayers in the states in question didn’t need to report these special payments in 2022 and the IRS won’t challenge their taxability….