2022 Georgia Tax Rebate Question

[Bluelex18]

In 2022 Georgia gave out a 500 dollar check to Married filing Jointly Households and I realize that it is not taxable income on the state level.  However on my Federal Taxes do I need to report this 500 dollars??

I filed using Standard Deduction and also I didn't not recieve a 1099 at all from the State of Georgia.  I am hearing that the State are still waiting for Guidance from the IRS directly, but I already filed so I'm just trying to figure out if I need to file an amendment for the Federal Part??

Anyone hear anything or in the same boat??

[DavidD66]

The state of Georgia made a statement shortly after they began sending out the refunds, stating that they would not be taxable.  The IRS has yet to weigh in on the situation other than to say they are looking in to, and recommending not filing until they do.  Of course, you have already filed. If they do determine that the payments are potentially taxable, the Georgia refund would almost certainly only be taxable had you itemized deductions, including Georgia State Income Tax.

To see the IRS Statement, click on IRS Statement — Taxability of State Payments  

[Bluelex18]

Based on the latest IRS guidance:

In addition, many people in Georgia, Massachusetts, South Carolina and Virginia also will not include state payments in income for federal tax purposes if they meet certain requirements. For these individuals, state payments will not be included for federal tax purposes if the payment is a refund of state taxes paid and either the recipient claimed the standard deduction or itemized their deductions but did not receive a tax benefit.

In the last two years I owed taxes to the state of Georgia and paid what I owed and afterward received the maximum 500 dollar refund of state taxes… I claim standard deduction but I’m confused what do they mean by receive a tax benefit??   I don’t think I got a tax benefit but I’m not 100 percent sure because I need clarification on what that means.. help?

[ErnieS0]

You did not receive a tax benefit because you claimed the standard deduction so your Georgia Tax Rebate is not taxable.

A tax benefit means you were able to save federal tax by deducting Georgia tax. Taxpayers who itemized their deductions are able to deduct either state and local tax or sales tax. Those who deduct income tax generally receive a tax benefit. Those who chose to deduct sales tax did not receive a tax benefit from deducting state income tax.