Sunday, February 12, 2023

Bad News, Then Good

First, the bad news:

Many Californians are reporting that scammers drained their inflation relief debit cards before they could use the money. What's worse? They're now finding out they may have to pay income taxes on the money they never received.

The state gave out these Middle Class Tax Refunds to offset high inflation and gas prices. Now, some say they would've been better off without the payments in the first place.

Why not just use direct deposit?  It's not like this couldn't have been anticipated.

If Florida, a red state, had done something similar, I'll bet this decision would have gone a different way:

California taxpayers got some great news Friday from the Internal Revenue Service, the federal government will not tax those Middle Class Tax Refunds after all.

Californians have been waiting for weeks to find out if the IRS will tax their inflation relief payments. Today, the IRS said no - it qualifies as "relief." 

I wrote about those Middle Class Tax Refunds just under two months ago.

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