In which states do you have to pay taxes on relief checks?

A fresh IRS press release has clarified that millions of Americans that received state support in paying their bills this year will not need to pay tax on the money received as part of their federal tax return.

Many of the states that sent out a form of relief payment in 2022 is covered by the tax change, so no one receiving the support will have to pay tax upon it.

There are 21 states affected. If your state is not listed below then you will be paying federal taxes on the money you received:

The IRS has published a breakdown explaining which support payments are affected.

The states with a few extra stipulations

For the four states below, their 2022 payments are to be excluded from federal income taxes in all cases apart from filers who itemise their tax deductions and claim the the state and local tax (SALT) deduction up to $10,000. The states affected are:

Economists spoke to CNBC to explain in simpler terms how taxpayers in these states are affected.

“A person who pays $5,000 in state taxes then receives a $1,000 rebate check is, in effect, paying $4,000 in state taxes,” says Jared Walczak, vice president of state projects for the Tax Foundation. “If they are able to claim $5,000 on their federal income tax return under the SALT deduction, they are receiving an excess tax benefit.

”In that case, you’d include $5,000 as part of your SALT deduction but count the $1,000 as taxable income, which is “functionally the same as only deducting $4,000,” says Walczak.