2023 State Rebates and Payments Update

Taxpayers in many states won't need to worry about including state rebates and payments from 2022 on their federal returns.

On February 10, 2023, the IRS issued guidance confirming this news. In a statement, the IRS noted that given sound tax administration and other factors, many state payments do not have to be reported on individual income tax returns at next year's filing time. This adjustment is welcomed news for taxpayers looking forward to smoothing out their tax burdens soon.

The IRS recognizes that recent changes to the tax code have been a complicated process for all parties involved. They continue to move swiftly in ensuring the proper implementation of new regulations to provide relief funds to individuals and businesses.

General welfare and disaster relief payments

Payments made to promote the general welfare or relief in times of disaster can be exempt from taxation under certain conditions. It is essential to understand the requirements of these exceptions as part of the process when assessing such payments for the tax liability.

Given the fact that the pandemic emergency declaration is ending in May 2023, making this an issue only for the 2022 tax year, if a taxpayer does not include the amount of one of these payments in its 2022 income for federal income tax purposes, the IRS will not challenge the treatment of the 2022 payment as excludable for income on an original or amended return.

Payments from the following states fall in this category, and the IRS will not challenge the treatment of these payments as excludable for federal income tax purposes in 2022.



State payment program and link to state website


Energy Relief Payment (supplementing the Permanent Fund Dividend)

Permanent Fund Dividend | Alaska Department of Revenue


Middle Class Tax Refund

Middle Class Tax Refund | California Franchise Tax Board


Colorado Cash Back

TABOR Refund Mechanism For FY 2021-22 Only | Colorado General Assembly


Child Tax Rebate

2022 Child Tax Rebate (ct.gov)


Relief Rebate Program

2022 Delaware Relief Rebate Program | Department of Finance (delaware.gov)


Pandemic Temporary Assistance to Needy Families

Hope Florida – A Pathway to Prosperity | Florida Department of Children and Families


Act 115 Refund

Act 115 Refund | Hawaii Department of Taxation


2022 Tax Rebate

2022 Tax Rebates: Frequently Asked Questions | State Tax Commission (idaho.gov)


Individual Income Tax Rebate

2022 State of Illinois Tax Rebates | Illinois Department of Revenue

Property Tax Rebate

2022 State of Illinois Tax Rebates | Illinois Department of Revenue


Automatic Taxpayer Refund #1

Automatic Taxpayer Refund #2

Automatic Taxpayer Refund | Indiana Department of Revenue


Pandemic Relief Payments

2022 Relief Checks | Maine Revenue Services

New Jersey

ITIN Holders Director Assistance Program

ITIN Holders Direct Assistance Program | New Jersey Division of Taxation

New Mexico

Multiple rebate and relief programs

New Mexico Families Eligible for Household Relief : Taxation and Revenue New Mexico

New York

Supplemental Child Credit and Supplemental Earned Income Tax Credit

Additional New York State child and earned income tax payments (ny.gov)


One-Time Assistance Payments

One Time Assistance Payments | Oregon Department of Revenue


One-Time Bonus Rebates

One-Time Bonus Property Tax/Rent Rebates | Pennsylvania Department of Revenue

Rhode Island

2022 Child Tax Rebates

2022 Child Tax Rebates | Rhode Island Division of Taxation