TAMPA, Fla. (WFLA) —The IRS has an unusual message for some taxpayers.
Typically, we’re told to file our taxes as soon as possible, but this year the IRS is telling thousands of people to wait.
Last year, 19 states, including Florida, sent some people inflation relief payments. In the Sunshine State, it was called Hope Florida, and 60,000 families received checks of $450 for each child. The money was to offset the cost of more expensive food and gas.
But here’s the question: Is that money considered taxable income?
The short answer: The IRS hasn’t figured that out yet so they’re asking these families to hold off on filing taxes until there’s a decision.
Linda l. Snover, a tax professional with Yankee Road LLC, says that leaves some families with a tough choice to make.
“Well, the people they’re asking to hold up on this, which would have been the ones that got the $450 , those are the people that that $450 wasn’t even a drop in the bucket as to what they needed today with inflation the way it is,” Snover said.
Snover explains there’s been no direction from the IRS as to how long families should wait to file, and waiting to file often means waiting longer for tax refunds.
That’s why Snover is recommending her clients file anyway—and don’t claim the refund payments. That way, she advises, people get their refunds and settle up with the IRS later, if need be.
“If they decide they want to tax it, then they’ll send you a bill, and if you’re in the 10 percent tax bracket, of the $450, it would be $45,” she said.
Again, the IRS is recommending you wait to file if you received this inflation relief payment. If you’ve already filed, though, the IRS says there’s no need to amend your return.
