Maine’s $850 Relief Checks Don’t Have to Be Claimed on 2022 Taxes

The Internal Revenue Service has ruled that state-issued relief checks, including Maine's $850 payments, will not have to be included as 2022 income.

How Has The Delay in this Decision Affected People's Taxes?

I always prepare my taxes early. I want it done and filed, so I don't have to think about it. But, this year, I've been holding off while the Internal Revenue Service decided whether or not our state-issued relief checks would have to be declared as income. For others, who had already filed, it could have meant being forced to file an amendment. So I was happy when I read that the decision had been made on Friday.

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How Many States Got Relief Checks?

A total of 21 states issued some sort of relief payments in 2022, in an attempt to help their residents weather the climate of inflation. Those states included Maine, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, New Jersey, New Mexico, New York, Oregon, Pennsylvania, and Rhode Island. The money was welcomed by most people, but then left them in doubt about how to handle the extra money on their income taxes. Should it be reported as income or was it exempt? It was a question that even left the IRS in doubt.

What is the IRS Determination About State-Issued Relief Checks?

But now, federal tax officials have determined that the recipients of state-issued relief payments will not have to declare them as income on their 2022 tax returns. A ruling by the Internal Revenue Service declared that payments related to general welfare and disaster relief would be exempt from being taxed.

So now my plans are set for the upcoming weekend. If anyone needs me, I'll be compiling my paperwork and getting my taxes done.