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IRS: Taxpayers in 21 states should consider amending returns

The IRS said those who filed their taxes early might be able to amend their returns to get a refund.
IRS: Taxpayers in 21 states should consider amending returns
Posted at 5:15 AM, Apr 12, 2023
and last updated 2023-04-12 09:34:30-04

If you were an early filer in one of 21 states, you might want to consider filing an amended tax return, the IRS said. 

For the first few weeks of this tax season, the IRS encouraged residents in states that offered stimulus checks in 2022 to wait. The IRS was in the process of deciding whether these payments would constitute taxable income. 

On Feb. 10, several weeks into tax season, the IRS ruled that residents in these states would not be required to include such payments on their tax returns.

But apparently, not everyone got the message to hold off filing taxes. 

“Taxpayers who filed before Feb. 10 in these areas and meet these requirements should check their tax return to make sure they paid tax on a state refund before filing an amended return,” the IRS said. “In addition, taxpayers in this situation who used a tax professional can consult with them to determine whether an amended return is necessary.”

Through Feb. 10, the IRS said it received 28.8 million returns, which was down only 0.8% from the year before at the same time.

SEE MORE: Should you file for a tax extension or rush to file by April 18?

Seventeen of the states provided general welfare and disaster relief payments. Those states are Alaska, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island.

In four other states, Georgia, Massachusetts, South Carolina and Virginia, taxpayers do not need to list state payments 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.

Taxpayers can file an amended return electronically. This way, they are eligible for a tax refund through direct deposit. 

The IRS says it will also accept paper amendments, but notes refunds are not sent via direct deposit, meaning refunds will take longer to receive. 

Although the tax deadline for the 2022 tax season is April 18, taxpayers will have until April 2026 to file an amended 2022 return.