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Just found out that if you got those 2023 stimulus payments from your state back in 2022, you probably don't owe taxes on them. The IRS finally clarified this mid-February and honestly it's wild they took so long to make that call. Like 21 states handed out these payments and most people were just sitting there wondering if they'd have to report it as income.
So basically, the IRS said most of these are considered general welfare or disaster relief, which aren't taxable federally. California, New York, Colorado, Florida, and a bunch of others were on that list. Alaska's got a weird situation with their PFD thing, and Georgia, Massachusetts, South Carolina, Virginia have specific rules if you itemized deductions.
But here's the thing - even though 2022 was pretty much the last round of state-level 2023 stimulus action for most of us, some states are still processing payments into 2023. Massachusetts let people claim refunds if they filed by September, New Jersey had that property tax relief thing with deadlines in February, and New Mexico was still accepting applications through May for people who don't usually file returns.
The whole situation honestly shows why you shouldn't always rush to file taxes early lol. If you were waiting on clarity about whether to report that stimulus money, at least the IRS finally gave an answer. Just depends which state you're in whether it actually applies to you or not.