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Published: Feb 13, 2023 3 min read
Close-up of a 1040 Individual Income Tax Form
Money; Getty Images

If you received a relief payment or stimulus check from your state last year, good news: You don’t need to report it on your federal tax return. Probably.

After much deliberation, the IRS issued new guidance on Friday clarifying that residents of certain states who received tax rebates in 2022 do not need to report those rebates as income.

Last year, many states distributed these special relief payments to eligible residents to help them cope with rising prices and energy costs as well as expenses related to the pandemic. The IRS had previously advised taxpayers to wait to file their taxes this spring until it determined whether the state payments would be taxed at the federal level.