Why do I feel like we were told we didn't have to worry about this?
I guess I can't remember completely, but I feel like as all these various relief/stimulus checks the last few years were put in our hands with the caveat that there wouldn't be any taxes on stimulus moneys. I feel like it was one of the first questions everyone asked. Why would you ask for money from people who obviously need it?
But that seems to be what's happening at the moment in Washington DC. The IRS is currently in a state of relative chaos, trying to figure about what they're going to do about almost 2 dozen states that awarded some kind of assistance money. Basically, they're trying to decide whether or not there should be a cut for the government.
You may want to delay filing your taxes for a minute...
According to CNBC, the IRS is suggesting people hold off for just a bit before sending in this year's return, while they get the whole thing sorted out. If folks have already filed this year, they say you shouldn't do anything, so don't file an amendment. You could easily add it to next year's taxes if it's determined they're going to take a piece.
What I personally find ironic is that here in Maine, most of the money for these programs came from the federal government. So why would they fork over a bunch of money, just to turn around and ask for part of it back. Not to mention, the whole point was to fight the amount of inflation in the US. Now you want it back?
Well, to be fair, not the whole thing. But it still seems crazy that this couldn't have been settled until two months before it's time to file taxes. It's not like it will kill your bottom line, but it's still an inconvenience to Mainers who really needed the money. So hold your horses for now, and wait for the next steps...